With the CBD and cannabis space still en fuego even in the face of falling broad stock market indices, Hemp Inc (OTCMKTS:HEMP) shares may be worth a fresh look. The stock has underperformed but continues to build a buzz in the space. To further flesh that out, the company just announced that it was featured in an article by Mail Tribune regarding Oregon’s burgeoning hemp industry.
According to the release, “The Mail Tribune is a seven-day daily newspaper based in Medford, Oregon, that serves Jackson County, Oregon, and adjacent areas of northern California. The article includes comments from Hemp, Inc. CEO Bruce Perlowin on the potential of Oregon’s industrial hemp industry and elaborates on Hemp, Inc.’s expanding operations within the state. The hemp-derived cannabidiol (CBD) market is expected to hit $591 million this year, and it may grow 40 times this size—to $22 billion by 2022, according to a new report by Brightfield Group.”
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 continues to find new means of gaining exposure, even though shares continue to sharply and consistently underperform the broad CBD and cannabis space.
That said, one does get the feeling that this stock may be pushing toward a revitalization in market sentiment and should be watched closely at current levels. In all, we’ve witnessed nearly -10% stripped out of share values of the listing over the past week of action. In addition, the stock has registered increased average transaction volume recently, with the past month seeing 9% beyond its prior sustained average level.
“We are thrilled to be featured in Mail Tribune’s coverage of the Oregon hemp industry that allows the public and our shareholders more insight into our operations there,” said Hemp, Inc. CEO Bruce Perlowin. “Our focus is on supporting the local family farm, and we are proud to have already assisted numerous farmers in the area by processing thousands of pounds of hemp. Hemp, Inc.’s latest move into Oregon is a part of the company’s national growth strategy to expand operations in desirable hemp-growing markets, including development of our 500-acre Arizona hemp growing community and our upcoming line of CBD pre-rolls. We are proud to be on the forefront of this billion-dollar industry.”
At this time, carrying a capital value in the market of $19M, HEMP has a chunk ($661K) of cash on the books, which must be weighed relative to 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%. We will update the story again as soon as further details emerge. 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.