Is Hemp Inc (OTCMKTS:HEMP) Starting its Big Comeback?

Is Hemp Inc (OTCMKTS:HEMP) Starting its Big Comeback?


One of the more interesting stocks to track right now on the OTC is the venerable Hemp Inc (OTCMKTS:HEMP), with its many roller-coaster twists and turns over the years, and its move to assert a fresh narrative of the blossoming final victory as the hemp market comes of age in the US. If the latter narrative were really so easy to establish, we would likely be seeing stronger stock action. But the potential here remains plausible.

One reason we might embrace the unlikely potential for this stock to suddenly grasp the reins and reinvent itself as a kind of stock market version of James J. Braddock, the 1930’s boxer, is the company’s ability to start delivering on its financial data after all these years. To wit: the company just announced surprisingly strong financial results for the quarter and full year ending December, 31, 2018. According to the release, “A global leader in the industrial hemp industry with bi-coastal processing centers including the 85,000 square-foot multipurpose industrial hemp processing facility in Spring Hope, North Carolina, a state of the art processing center in Medford, Oregon, and a 500-acre hemp growing Eco-Village in Golden Valley, Arizona, Hemp, Inc. showed over an 1,800% increase in sales from previous year 2017.

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 surprisingly strong financial results for the quarter and full year ending December 31, 2018. 

Traders will note 11% piled on for shareholders of the name during the trailing month. Moreover, the stock has seen interest climb, with an increase in recent trading volume of just shy of 120% over the long run average.

“This steady increase is indicative of the industry’s growth. The industrial hemp industry and Hemp, Inc.’s foothold in that industry continue to grow,” said Bruce Perlowin, CEO of Hemp, Inc. (OTC: HEMP). “We’ve fundamentally changed how we run our company to focus on building a hemp infrastructure since none existed previously. We’ve invested heavily to build this infrastructure, which currently consists of 9 divisions, as you’ll read below. I liken Hemp, Inc.’s business model to that of the model where today the richest man in the world plowed all their operating capital and profits back into building the infrastructure. We, instinctively, have been following that same path. This is a business strategy that obviously works very well.”

Earning a current market cap value of $19.76M, HEMP has a chunk ($482K) of cash on the books, which compares with about $456K in total current liabilities. HEMP is pulling in trailing 12-month revenues of $1.9M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 4298.7%. You can bet we will update this one again as new information comes into view. 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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