Hemp, Inc. (OTCMKTS:HEMP) Starts The Week Bloody

We haven’t heard any news from Hemp, Inc. (OTCMKTS:HEMP, HEMP message board) for quite a while now and still the ticker managed to gain the attention of investors as the medical marijuana hype came back last week.

Not only did the ticker soar with no actual news or developments to support the upward movement, but it did so on massive volumes. It recorded 2 sessions with a daily trade value of over $3 million, unfortunately the second one of which was red.

It managed to somewhat stabilize in Friday and gain some 4.44%, but the hype was not as strong and HEMP recorded $1 million in daily dollar volume. At first sight their financials appear to be able to sustain HEMP’s price. Here is what the company recorded in the second quarter of the year.

• cash: $42 thousand


• current assets: $4.84 million


• total assets: $7.3 million


• quarterly revenues: $2.36 million


• quarterly net income $1.82 million

And although these seem to be some pretty solid numbers it is good to note that they were achieved with clever accounting, not business. While the cash on hand is obviously low it seems that the current assets of the company are rather good. However, 95% of them are in the form of securities held for sale.

Furthermore, 100% of the revenues that HEMP recorded has been generated through the sale of securities. What is bad, however, is that Hollund Industrial Marine, Inc. (OTCMKTS:HIMR), a company from which HEMP received stock compensation, reached its 250 million authorized shares and executed a 1 for 5000 reverse split.

Another one, WebXU, Inc. (OTCMKTS:WBXU) is currently trading in the gray market and might soon be completely delisted. HEMP itself is close to its 3 billion authorized shares limit and sitting at $106 is heavily overvalued.

This is the most probable reason for the fast correction and the current direction of HEMP’s stock which started the week with a 10.64% loss and decreased investor attention. In any case, it is imperative that you do your due diligence and weigh out the risks before making an investment decision.

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Hemp, Inc. (OTCMKTS:HEMP) Starts The Week Bloody