Dragni Dragnev

HEMP, Inc. (OTCMKTS:HEMP) Bounces On Recycled News

by Dragni Dragnev July 14, 2014

The PR that HEMP, Inc. (OTCMKTS:HEMP, HEMP message board) released on July 3, was so successful in pushing up company stock that it looks like HEMP management just couldn't resist the temptation - and ended up using it twice. Not only that - it was supplemented with another fluff announcement just minutes ago.

Ten days ago, investors were made aware that HEMPpurchased a whole line of automated Temafa decortication equipment”. Evidently, HEMP enthusiasts found the news so incredibly inspiring that their buying launched the ticker more than 25% up the charts during that and the following session. As expected, the gains couldn't be retained – as with most marijuana hype jumps, this one was followed by a crash that wiped all progress from the charts.

However, now HEMP is using the same press release to boost its market value again, and the odd thing is that this tactic seems to actually be working – again. It has successfully drawn attention away from the fact that the company's multitude of red flags keeps piling up.

Red flags, like HEMP's tendency towards dilution, or the fact that its CEO could dump about a billion shares of common stock on the market at any given time, if he felt so inclined. Or the fact that HEMP currently has 2.1 BILLION outstanding shares out of the 3 billion authorized. That ridiculously overblown share cap alone should be enough of a warning for investors that dilution is very likely.

Still, with all the legalization developments going on and with HEMP pumping out new press releases and even recycling old ones, it isn't surprising that the ticker's back up on the rise. Just minutes ago, HEMP released another piece of PR, announcing that the $240,600 worth of BIOADAPTIVES INC. (OTCBB:BDPT) common stock that it gave away as “stock dividends” to its loyal investors has increased its value by 3733%.

By the look of things, heavy buying and marijuana hype pushed BDPT stock sky-high, all the way to the $4.6 mark. At first glance this appears extremely impressive, however, investors would do well to think really hard about jumping on the HEMP train again at this point in time.

Seeing as how the rise of both HEMP and its subsidiary BDMT appears to be just another hype driven take-off, that may prove to be a very risky move indeed.

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