Hemp, Inc. (OTCMKTS:HEMP) Sees Increased Activity

Thanks to all the recent developments, mainly the latest statement from the US department of Justice, it enjoyed a brief spike only to crash on the very next day. So far for this month the ticker has had only a couple of sessions where traded shares have surpassed the average amount of 14 million.

Yesterday though HEMP managed to once again place among the top traded stocks after surging by 21% late in the afternoon and closing at $0.02. The only news that came out described a radio interview given by the CEO Mr. Bruce Perlowin. Still the market reacted positively and traded shares reached 14 times the amount from the previous session.

It is doubtful that such enthusiasm can be sustained when most of the red flags around the company are as valid as ever. According to the latest financial report the company could rely on the following financials: 

• $105 thousand cash
• $716 thousand total current assets
• $1.5 million total current liabilities
• $530 thousand revenues
• $575 thousand net loss

It is curious that the liabilities consist almost entirely of a debt owed to the CEO of the company. Who, by the way, has been converting his preferred K shares into 238 million common shares for the first two quarters of the year. This still leaves him with 153 million preferred shares that could turn into1.5 billion if all of them are converted. 

HEMP is overly enthusiastic in releasing PR articles discussing all sorts of things except revenues and business operations. The stock moves in a positive direction only when driven by an industry wide hype with the underlying fundamentals offering no support. 

Medical Marijuana, Inc. (OTCMKTS:MJNA), the best-known company operating in the sector, is currently trying to stop is slow decline closing at $0.15 yesterday. On the other hand Growlife Inc (OTCBB:PHOT) may try to begin another upward climb after closing 12% higher at $0.051.