Hemp Inc (HEMP)

[Det_Robert_Thorne]

Not in denial, because I'm not wrong

Ever since the hemp bills were introduced in the U.S. Congress in early 2015, I've stated that HEMP wouldn't be processing hemp in the plant in 2015. Unless Perlowin imports a few stalks during the startup tests, that prediction will be correct.

From January, 2015:

The odds of a NC State or Federal law passing within the next few months are rather low, and then there is the matter of the date the laws would go into effect.

In NC, any law passed and signed probably wouldn't go into effect until July 1, 2015, which would be too late to order sufficient seed. It's possible, though that hemp could be imported from surrounding states, but it won't be very much.

At the federal level, bills can sit in committees for months, and often never get out of committee.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110313040

Even with the change in NC law, HEMP is now committed to processing kenaf through at least the first half of 2016, and if there is hemp available for processing at the end of 2016, then whether or not he converts the equipment to handle hemp will depend upon how well things are going with the kenaf.

I don't care if HEMP is a leader in industrial hemp, because I look at the financials of the company, and the way I see it, unless the kenaf market really takes off, the combination of loans from Perlowin and share conversion will result in a much higher OS than HEMP has now, and normal EPS rules will apply, because we're talking about and agricultural commodity business.

Therefore, I'll be looking at HEMP's market cap versus the share count and EPS.

Right now, HEMP has a market cap of about $17M on 320M shares. Some think that's too low, but I think it's about right, considering we're looking at losses 3Q/15 and 4Q/15. But what happens if we find out that by the end of September, the OS had risen to 600M shares due to conversion of Preferred K shares and/or the payment of shares for services?

In that case, we're looking at a company that's valued at $31M yet still has the same losses in 3Q/15. IMO, that would make the company overvalued.

So Perlowin's in a race against time, whether or not he's able to process hemp in 2016.