Hemp Inc (OTCMKTS:HEMP) Shareholder Enthusiasm Wanes

HEMP Stock

Hemp Inc (OTCMKTS:HEMP) has been in a serious tailspin of late. After being a serious laggard, HEMP stock is seeing some die-hards cash in their bets in recent days. The company’s most recent catalyst appears to have fallen short of exciting investor enthusiasm, but should still be appreciated. A couple days ago, the company announced that it completed its second edition of its Hemp University symposia.

We covered the first of these, if only to say that it clearly marked out the company’s strategy, like it or not, of what must be seen as a very long game of public information and zeitgeist impact. The idea is essentially to try to sell the concept of Hemp, and then assume they would emerge at the top of the heap. It’s a bit like when SUV’s first came out and Jeep did nothing but show how great the concept of an SUV would be – off-roading, spacious but not a minivan, etc – and assumed it would be the top dog, until the Ford Explorer came out. We don’t see a Ford Explorer of Hemp, but it could happen.

Hemp Inc (OTCMKTS:HEMP) was founded in 2008. The company’s information is somewhat erratic and difficult to parse through – a bit like its CEO.

However, we can get a broad idea of the goals and operations from their materials. But some of this information, particularly with this company, needs to be taken with a grain of salt.

As they frame the message, the company’s long-term goal is “to be the leader in the industrial hemp industry in America”. The company 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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According to David Schmitt, COO of Hemp, Inc.’s wholly owned subsidiary, Industrial Hemp Manufacturing, LLC, the 50+ attendees who toured the plant were impressed with its progress and potential.

Schmitt said, “This event was another success. Chocked full of valuable information for any landowner or farmer interested in growing hemp. The delivery was exceptional and we will continue to facilitate this type of information sharing. Our team did an awesome job, going above and beyond the call of duty.”

“It was a great weekend with an awesome team. I’m so grateful for the opportunity to get the hemp message out there. It is very rewarding to be playing a part in the hemp revolution,” said Dr. Michael Villa. Bill Billings also stressed how pleased he was with the outcome of the event.

“This is our second successful monthly industrial hemp educational symposium. Based on my observation, The Hemp University’s educational platform facilitates a genuine camaraderie among the participants and industry experts as information is shared and exchanged,” commented Perlowin. “We are definitely looking forward to the next one.”

Recent action has seen another -10% drop out of shares over the past week. And that action has taken place on a spate of mildly rising volume, with the past month seeing 2% above the average volume levels in play in HEMP stock over the longer term.

Now commanding a market cap of $29M, HEMP has about $306K in reported cash on the books, which compares with about $223K in total current liabilities. However, one should note that this is a pink sheet company serving up entirely unaudited financial reports. The company is pre-revenue at this point. This may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of HEMP stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!


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