Replies to post #43405 on Hemp Inc (HEMP)

[The Bread Man]

Wow, they must like it!

[peteypickem]

Probably a couple more institutional investors

[Det_Robert_Thorne]

The report was filed last night

HEMP filed the 1Q results last night, which was when I read it. Surprised that nobody mentioned it until the PR came out.

It looks good on the surface, but it's really composed of a series of illusions.

The "revenue" is the value of shares that are now worth a small fraction of what they were worth on the day the consulting deals were signed.

Several of the "constellation" companies haven't reported, and one, Dewmar, has missed it's FY2013 and 1Q/14 filing dates, and so has been dropped two tiers by OTC Markets, from OTCQB to OTC Pink Limited Information. On the day the deal with it was signed, Dewmar stock was at $0.008, and hit $0.0159 the next day. Today, it's trading at $0.0045, making the deal worth only $270K in the first year.

Perlowin loaned the company $229K (the cash on the balance sheet,) which he'll eventually convert to preferred shares, which will then be converted to commons.

The number of common shares increased by 300M, to 2.41B shares, mostly because of the conversion of preferred shares to commons.

The filing does not properly disclose who these shares went to, but my guess is Perlowin himself.

The compensation expense of $2.4M was paid in stock, and my guess is that this was payment for consulting services. We can all imagine who HEMP's main consultant is.

The filing states that Perlowin owns 50% of the stock, but doesn't show an actual number, and hasn't been changed in a couple of quarters, despite massive preferred share conversion.

http://www.otcmarkets.com/financialReportViewer?symbol=HEMP&id=121310