Hemp, Inc. (OTCMKTS:HEMP) Spikes on Press

After nearly three weeks of silence, Hemp, Inc. (OTCMKTS:HEMP) finally released another piece of news regarding their business. Well, this is what we thought when we saw the 20% spike in stock price that happened during yesterdays trading session. In reality, when we read the whole article we were left somewhat baffled.

The gist of it is that Mr. Ryan Loflin will excavate sixty acres of his father’s alfalfa farm to try and plant hemp. This whole process is going to be made into some sort of a documentary movie. By now you must be wondering what this whole thing has to do with the company – apparently they are serving as an executive producer. Not exactly the confidence boosting substantial news we had hoped for. And wouldn’t you know it in early trading today the ticker is already nearly 5% down from its previous close of $0.042.

Taking a look at their annual report makes it painfully obvious that the company is in a quite dire situation. The results they managed to achieve for the whole 2012 are :

• $3 thousand cash
• $18 thousand total current assets
• $689 thousand total current liabilities
• $8909 sales
• $16 million net loss

We are confident enough that the numbers paint a pretty accurate picture but some elaborations is still needed. Even though HEMP managed to sell some products the cost of it was so high that it immediately offset the proceedings. More importantly $15 million of the net loss was in the form of stock compensation the dilution is considerable. Just for the last quarter of 2012 HEMP has issued around 300 million of its common shares bringing the total amount to 1.3 billion.

Ultimately it is up to you whether to commit to a trade or not but the facts clearly show what the right decision is when it comes to HEMP‘s stock.