One stock that has been very interesting from a trading standpoint over the past 6 weeks is Hemp Inc (OTCMKTS:HEMP). Fresh off the signing of the Farm Bill – and all the strong advancements for hemp and CBD therein – shares of the stock predictably soared higher in December, but have since faded. Now, the question is about what comes next.
Helping to seek out an answer to that question, the company just announced a joint venture between Hemp, Inc. and retail store Hemp Healthcare, in Dolan Springs, Arizona, to sell high-end cannabidiol (CBD) and hemp-based products. According to the release, “Hemp, Inc. announced in July 2018 that the company had entered into a joint venture with Dolan Station to sell high-end CBD and Hemp, Inc. products as well. The global demand for CBD and hemp products at Dolan Station supported the opening of Hemp Healthcare.”
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 a joint venture between Hemp, Inc. and retail store Hemp Healthcare, in Dolan Springs, Arizona, to sell high-end cannabidiol (CBD) and hemp-based products.
The chart shows basically flat action for the stock over the past week. What’s more, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 16% above the average volume levels in play in this stock over the longer term.
“The joint venture between Hemp, Inc. and Hemp Healthcare will be a monumental stride for not only the storefront but also for Hemp, Inc., as we make our way into the tourism market,” said Hemp, Inc. CEO, Bruce Perlowin. “The consistent passing of individuals through this town, on their way to one of the most popular attractions in the United States, will only increase the awareness of high-end CBD and hemp-based products, including our own brand.”
Currently trading at a market capitalization of $21.87M, HEMP has a stash ($1.4M) of cash on the books, which must be weighed relative to 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%. This may be a very interesting story and we will look forward to updating it again soon. 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.