Hemp, Inc. (OTCMKTS:HEMP) Resumes Its Climb
After entering the new year with a bang, climbing with the entire marijuana sector, then taking a big step back, Hemp, Inc. (OTCMKTS:HEMP) seems to be back on the green track. The ticker climbed 41% yesterday, shuffling heavy volume of 81 million shares and stopping just above $0.04 per share at the bell.
The company has not posted any new press releases following its review of 2013 published on the last day of December. HEMP doesn’t need to toot its horn as the entire green leaf sector caught fire in the first session of the new year. The first sale of recreational-use marijuana took place on Jan 1, under the flashes and lenses of the media, recorded as a historical moment.
Investors, somewhat predictably, flocked around tickers with both close and distant relations to marijuana and sent them through the roof on frenzied buying. The first corrective pullback has now come and gone and it appears the majority of the stocks are on the rise, with HEMP generating nearly $3 million worth of trades yesterday.
HEMP‘s most current publicly announced financial state is that of the end of Q3 2013 and that report contained figures that were not too inspiring:
- $2.2 thousand in cash
- $1.2 million in current liabilities
- $1.6 million in revenues for Jan-Sep 2013
- $945 thousand in net loss for Jan-Sep 2013
Given that HEMP turned into an operating company in early 2013, it’s admirable that it has grown its revenues over the first three quarters. Still, the bottom line for the company was a net loss approaching a million and very little cash on hand.
With the wild swings currently taking place it’s practically impossible to make any predictions for the immediate future of the sector and the roller coaster ride is pretty much guaranteed to continue. However, investors looking to ride the marijuana hype, regardless of whether they are looking at HEMP or another ticker, would do well to remember what happened after the Feb 2013 pot sector spike.
