Hemp Inc (OTCMKTS:HEMP) Surges On Fluff PRs

In a little over two weeks Hemp Inc (OTCMKTS:HEMP) managed to issue six different PRs. Although the press releases had little to do with HEMP‘s operations and contained little more than fluff the increased PR activity seems to be working. Investors have been showing growing interest and the rekindled enthusiasm has pushed the stock up the chart.

After surging by another 12.3% yesterday currently HEMP are sitting at $0.073 per share. Equally as impressive was the number of shares that changed hands during the session – investors shifted over 7.1 million shares, three times higher than the monthly average and the biggest daily volume for HEMP since mid-July. How long will the excitement last though?

HEMP‘s financials have been nothing short of depressing for quite a while and the latest quarterly report wasn’t any different. According to it as of June 30 the company had:

• $176 thousand cash
• $907 thousand total current assets
• $2.5 million total current liabilities
• $33 thousand revenues
• $1.14 million net loss

Until the company’s Temafa decortication line has been successfully reassembled it is quite unlikely that the numbers on the balance sheet will get any better. And while we are talking about HEMP‘s Temafa plant the last update about its progress came on September 29 when the company stated that around 80% of the reassembly has been completed. Before you get too excited though let’s point out that while HEMP expect the facility to become operational by the end of the year they also state that some “unexpected delays could occur” pushing the completion of the plant into the first quarter of 2016.

In the meantime the common stock of the company could continue to be severely diluted. In our articles about the company we have continuously warned you that the outstanding shares have been growing out of control thanks to the incessant conversion of preferred and preferred K shares. As a result of the 10-for-1 reverse split and the increase of the authorized shares to 5.5 BILLION there is now plenty of room for the more and more conversions. At the end of June there were 81 million preferred shares and 214 million preferred K shares.

HEMP‘s stock has displayed on numerous occasions its ability to jump upwards when there are positive industry-wide events. Holding on to those gains however has proven to be quite difficult. Will this time be any different? It is up to you to decide.