Hemp, Inc. (OTCMKTS:HEMP) Surges Thanks To StockMister Tout
From time to time Hemp, Inc. (OTCMKTS:HEMP) reminds the market about itself and manages to climb among the top traded stocks for the day. Unfortunately for the shareholders of the company almost always such positive movements turn out to be immediately followed by a sharp correction. Looking at the chart performance of the stock it is plain to see that it ends a lot more days with losses than with gains. Even the current upwards trend of three consecutive sessions came after the stock dropped to a new 52-week low of $0.0085 on December 19.
Yesterday’s surge was also facilitated by an email alert send by the notorious pumper StockMister. The tout was only for the day and the pumper received no compensation. Still it proved to be quite effective as the increased buying started right as the email was distributed. At closing time HEMP had added 23% to its value and finished the day at $0.0148. More than 29 million shares got exchanged throughout the session nearly tripling the average amount for the company.
Investors should keep in mind that it will be quite difficult for the company to sustain such a positive sentiment towards its stock. On December 3 they announced that approximately 40 000 kg of hemp seeds and 35 000 of raw fiber had been harvested from their fields in China. How much will this improve the company’s bottom line remains to be seen but their financials are in a desperate need of a boost. According the latest quarterly report at the end of September HEMP had:
- $2200 cash
- $273 thousand total current assets
- $1.2 million total current liabilities
- $673 thousand revenues
- $36 thousand net loss
Although revenues have increased compared to the previous quarter their cash reserves are almost depleted. Net loss is closing in to 1 million for the 9 months since the start of the year. Exactly the same is happinening with the working capital deficit.
The CEO of the company is continuing to convert his preferred K shares into common stock with another 165 million common shares issued during the 3 months covered by the report. Currently the amount of outstanding shares has reached 1.6 billion out of the 3 billion 
authorized. If the CEO converts all of his preferred shares he will receive another 1.3 billion common shares.
authorized. If the CEO converts all of his preferred shares he will receive another 1.3 billion common shares.Investors should only attempt trades with Hemp’s stock only after doing extensive and deliberate research. Only few of the pennystock companies that deal with medical marijuana and cannabis have been able to return back to the high prices of February. Currently the stock of Growlife, Inc. (OTCBB:PHOT) is trading higher than the long-time leaders of the sector Medical Marijuana, Inc. (OTCMKTS:MJNA). In early trading today PHOT is sitting at $0.127 while MJNA is trading for $0.105.
