Interestingly, Hemp Inc (OTCMKTS:HEMP) remains above its 200-day simple moving average, which is the standard measure of a stock as in a strong state. The company just announced that the Hemp, Inc. executive team is visiting states across the country with industrial hemp cultivation programs to identify viable locations for the opening of local industrial hemp manufacturing and processing centers.
According to the company’s most recent release, “The company announced July 30, 2018, that it will soon launch its King of Hemp brand that consists of high-end cannabidiol (CBD) hemp pre-rolls and hemp buds, which supports further expansion of the company’s existing processing capabilities in Spring Hope, North Carolina.”
Hemp Inc (OTCMKTS:HEMP) was founded in 2008. The company has a reputation as one of the more controversial enterprises, even by the standards of either the OTC or the cannabis patch, which certainly paints a picture.
In any case, the company is making strong strides toward reshaping its image as a legitimate emerging leadership play in the industrial hemp space.
Hemp Inc understands its mission to be a provider of “green solutions that help make the world a better place to live. We support products that are eco-friendly, organic, healthy and solutions that replace many petroleum-based products.”
“Hemp Inc.’s wholly owned subsidiary Industrial Hemp Manufacturing, LLC purchased the largest decortication plant in North America, which is located in Spring Hope, North Carolina. The plant is housed in a 70,000,000 square foot warehouse on 9 acres. The company will start producing fiber, loss circulation materials (LCM) and absorbents from kenaf and later from hemp.”
That narrative continues forward to include the concept that “Hemp, Inc. will produce a product for drilling rigs called “lost circulation material” (LCM), which is used for maintaining the seals when drilling for water, oil, gas, and any other liquid or gas. This product alone is capable of producing millions of dollars in revenue since some of the largest oil companies in the world will be our primary customers.”
“Eventually, the company will produce fiber materials for the paper and fabric industries, and other industries that utilize materials from hemp to make products such as plastics, building materials, health, and beauty related products and more.” In other words, the concept of “diversified applications for hemp as an industrial material” is the paramount idea.
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As noted above, the stock has been consolidating just above its 200-day SMA following a breakout over the summer that ultimately was returned to sender. Recent action has been basically flat for the past month. Furthermore, the name has witnessed a pop in interest, as transaction volume levels have recently pushed 14% over what the stock has registered over the longer term.
“We are taking a very proactive approach in expanding Hemp, Inc.’s footprint nationwide as new states continue to pass hemp laws and the country moves closer to legalizing hemp,” said Hemp, Inc. CEO Bruce Perlowin. “Our commitment to identifying and securing new opportunities for industrial hemp cultivation, processing and product development in states across the country is an important part of our strategy to expand our farming infrastructure (Hemp, Inc.’s Division Three), thus providing increased value to our shareholders and positioning us as a leader in the space.”
Earning a current market cap value of $22.2M, HEMP has a reserve ($575K) of cash on the books, which stands against virtually no total current liabilities. HEMP is pulling in trailing 12-month revenues of $199K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 251.5%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $HEMP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $HEMP, either long or short, and we have not been compensated for this article.