Hemp Inc (HEMP)

[Alan Brochstein]

Surprise, surprise. HEMP must be making so much money that they couldn't file on time - too busy counting it! Actually, they came up with another excuse: Accounting system conversion. Here is the link. They anticipate filing by 8/19. I can't wait! Last quarter it was delayed due to change in auditor. They said it would be filed by May 20th but it wasn't until the 24th, so I am not holding my breath. Just another reason to expect sub-penny. If he had good news, he would get it out.

But, I am not the only sub-penny call on HEMP. Microcap analyst Grass Roots Research had this to say in a recent research report:

HEMP Inc., run by Bruce Perlowin, the King of Pot, has over 1.3 billion diluted shares outstanding and large blocks of preferred shares. Should the Company convert these preference shares, which they will do sooner or later, the total outstanding equity shares will explode to over 4 billion shares. This huge dilution renders a very low sub penny valuation for HEMP.

Further, in more than four years, Perlowin, past President of M*** and current CEO of HEMP has produced virtually no sales in both companies (total sales less than $20,000) nor any positive cash flow for HEMP. The Company has lost over ($2.5 million) in operating cash over the last 3 years without any significant revenues.

HEMP is currently divesting certain divisions, and acquiring others. Using a Discounted Cash Flow method of valuing HEMP common stock, requires the assumption of 4 billion shares divided into projected 5 year sales. This math argues against any price target above a penny. HEMP does not have a track record of making money in the hemp industry. Perhaps it will one day.