Replies to post #61564 on Hemp Inc (HEMP)

[Det_Robert_Thorne]

HEMP's results and PR just as I predicted

Last week, four days before HEMP filed its 3Q/15 report, I wrote the following:

Here's what's going to happen in the next few days:

1) If the report is filed by tomorrow as planned, because of the initial stocking orders for body candles and hemp shampoo by Carolina Canna Distributors, we'll see somewhat higher revenue than the $33K posted in 2Q/15. I estimate that it will be less than $100K.

2) Then, just like in the 2Q/15 PR announcing the results from that quarter, Perlowin will issue a PR about 3Q/15 trumpeting that revenues increased significantly, but he won't disclose any numbers or the large net loss.

As usual, my financial forecast was correct:

1) The 3Q/15 revenues were $71K, which is well less than $100K

2) Today's press release from Hemp mentions the revenue growth, but the facts that revenues were only $71K, the net operating loss was more than $700K and that the total net loss was $3.1M went unmentioned.


Here are two predictions for 4Q/15:

1) Because the decorticator won't be operational in 4Q/15, the operating results for the current quarter will be roughly the same as the third quarter, meaning less than $100K in revenue and an operating loss of $700K - $1M.

2) The decorticator facility won't be processing kenaf in volume until at least mid-February, and possibly not until March. We'll see a subtle language change late in December about this.