Hemp Inc (HEMP)

[Det_Robert_Thorne]

Hotstocked took a look at HEMP today

It's generally critical, addressing some of the same points I made yesterday (I think these guys read ihub and take some clues from my analyses).

Here's an excerpt, followed by a link:

At first glance the PR is extremely positive but as always taking an in-depth look is strongly advisable. Doing so will reveal that HEMP's decorticating plant is still not yet fully operational and with the company no longer giving any estimates for its completion investors will just have to wait and see exactly when will everything be ready. In the meantime the amount of SpillSuck that is available seems to be rather limited - HEMP has 25 thousand pounds in the final stages of packaging at the moment and expects to have another 100 thousand in the next 2-3 weeks. In the 2-3 weeks after that, however, they expect to get only 50 thousand pounds ready for market delivery. Investors should also note that yesterday's PR didn't mention any orders or sales for the product.

Still, maybe now HEMP will be able to report some more encouraging financial results from their operations. After all, the last quarter of 2015 was nothing short of a disaster with the company generating less than $2 thousand in revenues. As for the whole 2015 the annual report revealed the following numbers:

• $60 thousand cash
• $755 thousand total current assets
• $168 thousand total current liabilities
• $113 thousand annual revenues
• $8.8 million net loss

Apart from the dismal financials investors should also take into account the dilution of the common stock. After performing a 1-for-10 reverse split HEMP had around 320 million outstanding shares at the end of June 2015. By the end of December that number had almost reached 460 million, an increase of nearly 50%.

http://www.hotstocked.com/article/93493/hemp-inc-otcmkts-hemp-announces-first-product.html