Hemp Inc (HEMP)

[Det_Robert_Thorne]

You have it exactly right.

While it might cost $20M to duplicate the decorticator plant (per Perlowin) the value on the balance sheet of the current equipment will be less than 10% of that.

And you're correct that the Kenaf market is on life support in the U.S., perhaps even dead.

So what if it's the biggest decorticator in the U.S. if there is no hemp to process in North Carolina? Even if hemp was legal to grow in the state, the plant's maximum capacity is only enough to decorticate the hemp from 3000 acres. That might be a net profit before taxes of $2M, which with nearly 3B shares outstanding is essentially $0.00 EPS.

As to the calculations of the possible revenue from the plant using the Kenaf bought at auction, the usable kenaf turns out to only be 2200 tons, as the remaining 4600 tons were unusable due to mold (per HEMP's recent PR and the videos on the FB page.)

I agree with your conclusion that HEMP is a company designed to enrich Perlowin, at the expense of retail shareholders.