Hemp Inc. (OTCMKTS:HEMP) Suffers Expected Crash

Hemp Inc. (OTCMKTS:HEMP) managed to climb all the way up to a dime in the wake of the news that North Carolina will be legalizing industrial hemp – but it was clear from the get-go that the gains that the ticker made were unretainable. True to form, yesterday the ticker plunged 26.73% down the charts.

A lot of people saw the news as their cue to buy for a myriad of different reasons. Some investors genuinely believed that this turn of events will allow HEMP to prosper. Other, more enterprising traders, took advantage of the former group, bought low and sold high.

Unfortunately, at this point it is impossible to be absolutely certain which group had the better plan. However, there is a ton of evidence that it may be the second one.

Allow us to elaborate. As we’ve said on occasion in the past, in order to create investor value in the long run through being successful, HEMP needs to be in a position to capitalize on the vast and largely empty hemp market. Unfortunately, the numbers in its latest financial report fail to convince anyone that the company is positioned well to capitalizing on ANYTHING at all:

• 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 unfortunately they don’t say anything good about HEMP.

So where may HEMP be headed now? As usual, there is no easy answer to that question. On one hand, it seems like the ticker has gathered enough downward momentum to see it crash back below a nickel. On the other hand, it’s impossible to know when the next favorable development or optimistic PR will hit the web and draw attention to HEMP once more. However, as we saw yesterday, there’s no guarantee that even a positive PR or development can make HEMP go up again.

This is why shareholders, as well as investors wanting to make money out of trading HEMP should be on their toes at all times.