Probably the most prominent name in the pure-play hemp stock branding process to close out last year was Hemp Inc (OTCMKTS:HEMP). How could it be otherwise? The company was named for this. But shares have been underperforming just about everything on the planet since the signing of the bill, which suggests the event has served the purpose of monetization and dilution more than anything else. And we would ask you this one question: Now that hemp is legal, what other catalysts are left for this stock?
To try and stave off this interpretation, the company just announced that the company received noteworthy coverage discussing its central role supporting family farms in the wake of hemp legalization that came about with the passage of the 2018 Farm Bill. According to the release, specifically, Hemp, Inc. was featured in The Wilson Times. The Wilson Times is a local daily newspaper serving residents of Wilson, N.C. and surrounding communities.
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 the company received noteworthy coverage discussing its central role supporting family farms in the wake of hemp legalization that came about with the passage of the 2018 Farm Bill.
Traders will note 46% during the past month in terms of shareholder gains in the listing. Furthermore, the listing has seen a growing influx of trading interest, with the stock’s recent average trading volume running 34% above its longer-run average levels.
Bruce Perlowin, CEO of Hemp, Inc. said in the article, “Now that [hemp legalization] is here, it is sort of an ecstatic moment for the entire industry. It took $20 million in three and a half years to build that plant. Now that it’s built, North Carolina becomes the inheritors of that infrastructure. It is going to be hard for farmers anywhere else that don’t have a local processing center to process the hemp. I am glad we did it. North Carolina is a great state and can grow a lot of hemp.”
Earning a current market cap value of $1.03B, HEMP has a significant war chest ($176.9M) of cash on the books, which is balanced by about $17.4M 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 $9.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 414.1%. As more color becomes clear on the name, we will review the situation and update our take. 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.