Will the Farm Bill Bet on Hemp Inc (OTCMKTS:HEMP) Pay Off?

Will the Farm Bill Bet on Hemp Inc (OTCMKTS:HEMP) Pay Off?

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One stock that is clearly at a crossroads right now is Hemp Inc (OTCMKTS:HEMP). The company just got about the best news it could ever hope for in the 2018 Farm Bill, and shares have started to fade a bit. To help reinvigorate things, the company just announced that Hemp, Inc. CEO, Bruce Perlowin, wrote an article for Fox Business about the legalization of hemp that was published the day President Trump signed the 2018 Farm Bill.

According to the release, “the article, ‘Hemp CEO: Thanks to Farm Bill, the Hemp Revolution will Now be Made in America’, was published Dec. 20th and explains Hemp, Inc.’s role in the hemp revolution sweeping the United States. The bill redefines hemp as an agricultural commodity and removes hemp from the Controlled Substances Act and the jurisdiction of the Drug Enforcement Administration, allowing for a massive expansion of economic opportunities across all sectors of the hemp industry.”

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 just announced that Hemp, Inc. CEO, Bruce Perlowin, wrote an article for Fox Business about the legalization of hemp that was published the day President Trump signed the 2018 Farm Bill. In all, we’ve witnessed 35% tacked on to share pricing for the company in the past month. Moreover, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed greater than 170% above the average volume levels in play in this stock over the longer term.

“In states like North Carolina, Oregon, and Florida, we’re seeing hundreds of high paying jobs emerge because of hemp farming,” Perlowin writes. “We support the local farm worker by paying more than the average farm worker’s $10.95 hourly wage; as an example, we employed 40 trimmers this year that were making more than $35 an hour.”

Earning a current market cap value of $25.11M, HEMP has a bankroll ($1.4M) of cash on the books, which stands against about $1M in total current liabilities. One should also note that debt has been growing over recent quarters. HEMP is pulling in trailing 12-month revenues of $400K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 248.3%. We will update the story again soon as developments 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.

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