Georgi Kamburov

Hemp, Inc. (OTCMKTS:HEMP) Bursts On The Scene Once More

by Georgi Kamburov August 12, 2013
HEMPchart1.pngOut of nowhere last Friday Hemp, Inc. (OTCMKTS:HEMP, HEMP message board) decided that it should put an end to its hibernation and the ticker exploded. Almost record breaking 53 million shares were traded that day compared to the 7 million from the previous session. At closing time the company had gained 19% sitting at $0.015 but during the day it went as high as $0.018.

This positive surge was a breath of fresh air for the first industrial hemp publicly traded company. With the hype around the medical marijuana industry dying out HEMP has been on a constant downward slide making one depressing chart. We counted only 11 positive closes for the past 6 months since it first crashed in early-February. Traders who bought in when the stock was at a price levels above $0.11 have suffered a loss amounting to 87% of their initial investment.

HEMPchart2.pngIn a quite ironic move the sole-reason for Friday's enthusiasm towards HEMP was the CNN's Chief Medical Correspondent, Dr. Sanjay Gupta's new stance on the whole medical marijuana industry. The famous neurosurgeon once wrote an article for the Time magazine named "Why I would Vote No on Pot" but now it seems he has gone through a radical change in his views. For the past year he has been working on a documentary about the possible medical benefits of the marijuana plant. The irony here comes from HEMP's two news articles in which they try to differentiate their industrial hemp from the medical marijuana.

On the financial side things are still as grim as ever. A new financial report should be filed very soon but for now we have only the data for the first quarter of 2013:

  • $29 thousand cash
  • $414 thousand total current assets
  • $1.1 million total current liabilities
  • $426 thousand revenues
  • $313 thousand net loss

The respectable amount of revenues can offer little comfort to investors. With a negative working capital HEMP has been forced to take loans primarily from its CEO Mr. Bruce Perlowin. During the last session almost no one who bought shares during 2013 could have sold them at a profit except Mr. Perlowin. In 2012 he received 195 million of the companies series K preferred shares in order to settle $2 million he gave to HEMP. The series K can be converted into common shares at a rate of 1-for-10 which means that Mr. Perlowin can get 1.9 billion shares at a price of $0.001 each.

We may see some increased activity for the next few days but without feeding the hype regularly with PR articles it will once again quickly dissipate. The red flags around HEMP require careful consideration and doing you own due diligence is always a must.

229XUIIchart.pngThe record-long pump for Xumanii, Inc. (OTCMKTS:XUII) may have finally come to its end. After a whole week of sliding down and losing nearly 75% of its value the stock is now traded for less then 10 cents. Awesome Penny Stocks have also gone silent with the only remaining question being - Will they retire after failing to boost the ticker to $1 per share?

On the other hand the promotion for Bluforest, Inc. (OTCMKTS:BLUF) is still going strong with new alert emails issued almost daily. On Friday the company rose to $1.78 adding another 15% to its value.

Comments 0

Type the characters that you see in the box (5 characters).