Replies to post #53102 on Hemp Inc (HEMP)

[leftovers]

Lets see a Decorticator located in a state that doesn't allow the processing of Hemp? Seems almost worthless to me? The symbol [HEMP] is probably the most valuable asset this company has right now. I just can't see this outfit going anywhere with this amount of paper. I don't doubt in the Future the HEMP industry will thrive but this company is a long ways off the mark right now. IMHO

[Det_Robert_Thorne]

Yeah, I know what it's worth.

Per a study out of Alberta, Canada, the decorticator will show a Net Profit Before Taxes of about $120 (adj for U.S. dollars) for every ton of hemp it processes.

At full capacity over three shifts, the decorticator can process two tons of hemp per hour, or 48 tons in 24 hours. That's about $5800/day NPBT.

The plant definitely won't be running on Sundays (Perlowin's comment in a video,) and probably not on Saturday's either, so we're looking at about 280 days of operation, or about 13,500 tons of hemp. Total NPBT, about $1.6M.

That's $1.6M in total NPBT over one year, before corporate expenses are taken out, which will probably bring net profits for HEMP close to zero.

But looking at the decorticator alone, and figuring at least 3B shares by the time it's actually operating in 2Q/15, even if it was running at full capacity, that $1.6B NPBT translates to an EPS of about $0.00054, which means that at a share price of $0.035, hemp is selling for about 65 times the NBPT now for "maximum" operations it won't see for several years.

That's why it's overvalued.