One stock we have been extremely bearish on for most of our coverage is Hemp Inc (OTCMKTS:HEMP). At this point, it is starting to look like the chickens are coming home to roost, at long last. Could you imagine more positive news about an industry than that which we have seen on the hemp industry over the past 6-8 months? And yet, shares continue to falter, with a recent dive taking the stock to a mere 50% of its value back in March.
In yet another attempt to push the hype button, the company just announced that the number of South Carolina hemp farmers has grown 565 percent since 2018. According to the release, “Last year, South Carolina had 20 hemp farmers, according to the South Carolina Department of Agriculture. This year, the state has issued 113 permits which amounts to a 565 percent increase, reports show. This number has grown exponentially since the state removed the cap on the number of hemp growers there could be and how many acres they could grow.”
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.
Find out when $HEMP reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
As noted above, HEMP just announced the number of South Carolina hemp farmers has grown 565 percent since 2018.
The stock has suffered a bit of late, with shares of HEMP taking a hit in recent action, down about -16% over the past week. Furthermore, the stock has seen interest climb, with an increase in recent trading volume of topping 100% over what the stock has registered over the longer term.
“South Carolina is a unique climate that allows for hemp cultivation year-round so it is incredible to see this jump in hemp farmers,” said Hemp, Inc. CEO Bruce Perlowin. “We are excited for our neighbors to the south and hope these hard working farmers are able to bring back the family farm and continue this hemp revolution in America.”
Earning a current market cap value of $12M, HEMP has a store ($525K) of cash on the books, which is balanced by about $487K in total current liabilities. HEMP is pulling in trailing 12-month revenues of $2.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 407.6%. 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.