Hemp, Inc. (OTCMKTS:HEMP) Tries to Stop Its Slide
For the past two months the stock of Hemp, Inc (OTCMKTS:HEMP) has been constantly losing positions. Even the combined strength of the general marijuana hype and the non-stop barrage of optimistic PRs released by the company couldn’t influence the decline in share price and this week HEMP dropped as low as $0.065 per share.
What finally reinvigorated investors was the press release from Tuesday that announced some quite impressive revenue numbers for the last quarter of 2013. Apparently sales for the period have reached $722 thousand while for the whole of 2013 HEMP has logged in $2.3 million. The reaction from the market was almost immediate and yesterday HEMP surged up the chart by more than 33% and returned to 10 cents per share. Could the positive momentum be sustained though? Well, we have our doubts.
The company failed to file its annual report in the required time and on March 31 submitted a notification of late filing. Now investors will have to wait until April 15 in order to see the complete picture of HEMP’s financials. And at the end of September things weren’t exactly encouraging:
- $2200 cash
- $273 thousand total current assets
- $1.2 million total current liabilities
- $673 588 sales
- $36 thousand net loss
Most of the assets consisted of securities held for sale while $1.1 million of the liabilities were owed to the CEO of the company Bruce Perlowin. Mr. Perlowin has been slowly converting his preferred K shares and just for the three months covered by the report received close to 190 million common shares. This brought the number of outstanding shares to 1.6 billion out of the 3 billion authorized. It is highly unlikely that those numbers have stayed the same for the past six months and we will have to once again wait for the annual report in order to see the current share structure of the company.
Any trades involving the stock of HEMP should be done only after extensive due diligence. The company has announced quite a few consulting deals with various pennystocks in the marijuana industry but almost all of them are surrounded 
by red flags. Not to mention that even after yesterday’s gains HEMP is down by nearly 70% from its February highs.
by red flags. Not to mention that even after yesterday’s gains HEMP is down by nearly 70% from its February highs. Another of the older medical marijuana companies – Cannabis Science, Inc. (OTCMKTS:CBIS) also managed to reverse its negative trend and posted gains for the past two sessions. Yesterday their stock shot up by 17% and returned to $0.138 per share.
