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Det_Robert_Thorne

09/05/14 11:03 AM

#48716 RE: OTCBULL #48714

Not exactly. I'm saying HEMP's revenue is phony.

What I'm saying is that the pattern is that when HEMP signs a consulting client:

1) The series of press releases pumps the price, which allows HEMP to book a somewhat big revenue number

2) As time passes, and the clients don't perform, their stock prices fall

3) HEMP then has to take a writedown on the value of the stock on the balance sheet. Normally, this is referred to as "Mark to Market", and in the past, HEMP has used phrasing such as decline in the value of marketable securities (which is basically saying Mark to Market,) but in the 2Q/14 report, Perlowin referred to the MtM expense as "comprehensive loss".

In the end, HEMP reports a pumped-up revenue number which stays in the Statement of Income, while the value of the shares it received goes to zero.

Which means that the revenue is not real.