Hemp Inc. (OTCMKTS:HEMP) Soars Even Higher
The legalization of industrial hemp in North Carolina was certainly good news for Hemp Inc. (OTCMKTS:HEMP) – but is it really that big of a deal?
The ticker nearly made it to a dime in yesterday’s session, and looks like it may climb even further up the charts today. However, although the news may be good, investors should probably not get ahead of themselves.
Yes, it is obvious how this turn of events may end up being beneficial for HEMP. However, investors should also keep in mind that in order for HEMP to take advantage of the current situation, it must be well positioned and ready to capitalize on the situation.
And, if anything, the company’s latest financial report seems to indicate that HEMP is not ready to capitalize on ANYTHING:
- Cash – $176 thousand
- Current Liabilities – $2.5 million
- Quarterly Revenues – $33 thousand
- Net Loss – $1.1 million
These numbers sort of speak for themselves, and seem to have nothing good to say about HEMP‘s chances of creating investor value.
But that’s hardly a new development, now, is it? Suffice it to say that we have been covering HEMP for over two years and every single time it’s the same old story. Every time there is news, a wave of hype picks the ticker up and flings it skyward, only to see it crashing down again.
The marijuana rush of 2014 taught us that this seems to be the inevitable fate of all OTC Markets pinksheets under-achievers who deal in controversial products.
This is, of course, not to say that investors can’t make money trading HEMP stock. On the contrary – more than 27 MILLION shares of HEMP common stock changed hands yesterday, which means that profit is obviously possible. However, investors should go into such trades with both eyes open an a clear understanding of all the dangers that go hand in hand with trading HEMP stock.
This is why we advise that investors always be on their toes and do in-depth due diligence before making any risky moves.
