Shares of Hemp Inc (OTCMKTS:HEMP) have been working through a consolidative trading range in recent action, and recently held key support, which has developed around the $0.03/share level, just above the critical 200-day simple moving average. This is a clear positive signal. To help flesh the story out, the company just announced that its 85,000 square foot facility on 59 acres in Spring Hope, North Carolina did not sustain any damage during Hurricane Florence.
According to the release, “The once-powerful Category 4 hurricane, that recently hit the Northeast, has since been reduced to a rainy, windy mass of low pressure, according to numerous news sources. Hemp, Inc.’s industrial hemp processing facility was only closed Friday, September 14th to ensure personnel safety. The facility resumed operations the following business day on Monday, September 17th.”
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, HEMP shares bounced back on Wednesday at key technical support. The company recently announced that its 85,000 square foot facility on 59 acres in Spring Hope, North Carolina did not sustain any damage during Hurricane Florence, which is clearly positive news, helping to fuel support. The chart shows -9% peeled out of shares over the past week.
Furthermore, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 11% above the average volume levels in play in this stock over the longer term.
“As water levels recede, we will continue to monitor our hemp and kenaf plants in North Carolina closely,” said Perlowin. “We are grateful that our manufacturing and processing facility was left unscathed, and our thoughts and prayers are with those farmers and residents throughout the state that experienced a more negative impact from the storm’s wrath. As we continue to execute our strategic vision to expand our footprint across the U.S. (and the world), we are able to diversify our portfolio to include markets beyond our headquarters in North Carolina, allowing us to create increased value for our shareholders.”
Now commanding a market cap of $23.15M, HEMP has a chunk ($661K) of cash on the books, which is balanced by about $145K in 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%, even if this is math on some pretty sparse overall revenues. Growth is growth. 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.