HEMP, Inc. (OTCMKTS:HEMP)'s Momentum - Broken

HEMP, Inc. (OTCMKTS:HEMP, HEMP message board)’s most recent surge was broken yesterday, when the stock of its subsidiary BIOADAPTIVES INC. (OTCBB:BDPT) crashed 19.35%.

Looking at the charts, one could easily see that by the time the final bell rang, the company had not really lost all that much market value, but it’s obvious that its upward momentum has dissipated. A 1.47% drop is not really anything to write home about, unless it’s the harbinger of a turning tide – and looking at HEMP, that might just be the case.

The company had spiked once on some relevant news twelve days ago, but sadly the ascent was short-lived and the gains made during that time of sudden growth were lost in very short order – as is the norm with pot-stock PR jumps. HEMP’s next big move was made possible through it’s management’s rather successful attempt to recycle the same news into another piece of PR.

A further push was attempted through the announcement that the $240,600 worth of BDPT common stock that HEMP awarded to its loyal investors as “stock dividends” had managed to increase in value by a staggering 3733%. A great turn of events for said loyal shareholders but, sadly, it did not last long enough to affect the market.

Yesterday started slow and ended up turning into a disaster for BDPT‘s share prices. Things just escalated from then on – the news that the value that HEMP had allegedly created for its investors was so fleeting broke the company’s upward momentum.

Any investor that has kept his eyes on the marijuana branch recently knows that the green rush seems to have subsided for some time. As HEMP’s behavior clearly shows, marijuana-associated companies can still experience PR-induced, hype-driven bursts of volatility. What will happen to HEMP share prices from now on remains to be seen, but investors should probably be wary – experience teaches that PR jumps that lose their momentum usually end in disaster.

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HEMP, Inc. (OTCMKTS:HEMP)'s Momentum - Broken