Hemp Inc (HEMP)

[Det_Robert_Thorne]

Until HEMP generates hemp revenue, MCap sets price

There is no reason to predict a stock price for HEMP because there are too many unknowables, such as when we might see a paid pump like the one a couple of weeks ago (Trader's Choice), a PR from Perlowin that implies much more is going on than actually is, or share selling to raise cash that also increases the number of outstanding shares.

That's why I generally discuss over/undervaluation for HEMP with regards to the market cap relative to the reported & possible number of outstanding shares.

I wrote the following on Oct 1, 2015, 3Q/15 had ended and the OS was thought to be 320M shares (based on the 2Q/15 filing).

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.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117410282

On Oct 1, 2015, HEMP was selling for about $0.05. When the 3Q/15 report was filed, we found that HEMP again had a big loss and that the OS had increased to 398M shares, up 24%. Since then, HEMP's stock price has fallen about 22%, and the market cap based on the 398M OS is around $15.5M, so maybe it's a little undervalued compared to the $17M cap of Oct 1, 2015.

OTOH, I'm quite sure that the OS has continued to increase, and HEMP will be showing another unprofitable quarter in 4Q/15.

The 1Q/16 results will be pumped by today's announced deal with FUTL (which I call FUTiLe,) but I think that the street will see through that.

HEMP won't justify a higher market cap until it begins to process Kenaf and shows that it can profitably sell the finished products.