Hemp Inc (HEMP)

[Det_Robert_Thorne]

Low wage jobs and a low margin product

When you're talking about a product (Kenaf) without much of a market in the U.S., the selling price and margins will be low, which means the employees won't be very well paid.

Without a major change in the Kenaf market, the plant will only run one shift.

It will take years for hemp production in the Southeast United States to rise to the point that a plant with the capabilities of this equipment will be running at capacity, and it will still be a fairly low margin business, because competition will build rapidly.

On Oct 7, Election day across the U.S.A., the results of all the races (local and National,) will be known by Midnight, Pacific Standard Time.

Just like in 2012, when CO voters legalized marijuana, there will be a small bump in the stock prices, which will quickly become "sell the news" over the next few days, because any state that legalizes recreational or medical marijuana will likely take one year or more to put all the mechanisms in place, and investors will take that into account.

Meanwhile, it's nearly 1/3 of the way through 4Q/14, and HEMP has yet to announce any new consulting clients, which would allow those shares to be pumped so that HEMP could report a higher revenue.

Funny thing about stocks like HEMP. Once you read their filings and figure out their "game", the actions are easy to predict.