{"id":6580,"date":"2015-08-19T13:15:39","date_gmt":"2015-08-19T13:15:39","guid":{"rendered":"\/?p=6580"},"modified":"2015-08-19T13:39:30","modified_gmt":"2015-08-19T13:39:30","slug":"hemp-inc-otcmktshempd-deepens-its-losses","status":"publish","type":"post","link":"\/articles\/hemp-inc-otcmktshempd-deepens-its-losses\/","title":{"rendered":"Hemp, Inc. (OTCMKTS:HEMPD) Deepens Its Losses"},"content":{"rendered":"\n

<\/p>\n

For the past four sessions the stock of Hemp, Inc. (OTCMKTS:HEMP<\/a>D) has been destroying massive chunks of its value and it seems that the downtrend is only getting stronger – last Friday the ticker registered a loss of 18.5% while yesterday it slashed another 25%. Currently the stock is trading at $0.0795 per share. The volume for yesterday’s trading surpassed the monthly average by more than twice.<\/p>\n

In short, from its opening price of $0.19 on August 12 HEMP<\/a>’s <\/strong>losses are approaching 60% at the moment. But the situation is actually much worse because on July 31, without giving any prior warning to investors, the company performed a 1-for-10 reverse split. If the stock continues to lose positions investors could be facing soul-crushing losses.<\/p>\n

That is why in all our articles we warned you that the red flags surrounding HEMP<\/a><\/strong> should not be underestimated in the slightest. The financials of the company are nothing short of depressing. HEMP<\/a><\/strong> finished the first quarter of the year with:<\/p>\n

• $632 thousand cash
• $2.3 million current assets
• $2.27 million current liabilities
• $6,223 revenue
• $1.08 million net loss<\/p>\n

The report for the second quarter was supposed to be completed by the end of last week but instead HEMP<\/a><\/strong> submitted a notification of late filing which gave them a 5-day extension. This means that tomorrow the report should be filed and if it paints the same grim picture the stock could get depressed even further.<\/p>\n

The report will also show if any preferred K shares have been issued recently. In the past any amounts HEMP<\/a><\/strong> owed to its CEO were reduced through the issuance of preferred K shares, each of which can be turned into 10 common shares. At the end of March HEMP<\/a><\/strong> owed $2 million to Mr. Bruce Perlowin. Keep in mind that with the increased authorized amount of 5.5 billion shares and the subsequent reverse split there is plenty of room for dilution.<\/p>\n

Even if you believe that everything will get better once HEMP<\/a>’s <\/strong>Temafa decorticator becomes operational, it should still take quite a while because Phase 1 of the reassembly was completed just recently, you should still do extensive due diligence before putting any money in the stock. <\/p>\n","protected":false},"excerpt":{"rendered":"

For the past four sessions the stock of Hemp, Inc. (OTCMKTS:HEMPD) has been destroying massive chunks of its value and it seems that the downtrend is only getting stronger – last Friday the ticker registered...<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[228],"class_list":["post-6580","post","type-post","status-publish","format-standard","hentry","category-news","tag-hemp"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/6580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=6580"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/6580\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=6580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=6580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=6580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}