Hemp Inc (OTCMKTS: HEMP) is still struggling to steer clear of the bears. Since late April, the stock has faced continued downside price action from short-sellers. However, there is clear potential for the company to enter a bull market.
Hemp Share Analysis
The last year has been a rollercoaster experience for Hemp Inc. The stock has been fluctuating between $0.02 and $0.06 for the longest time, and some investors might have grown weary. While this is understandable, what is clear is that the stock price seems to have hit bottom and can only go up next.
From late November to mid-December 2018, there was massive activity in terms of moving HEMP shares. There was a huge interest in the stock which was probably due to the legalization of the cultivation of Hemp in the US via the 2018 Farm Bill. The legislation came in the period where Canada had just legalized marijuana, and the demand for hemp-derived cannabidiol (CBD) was on the rise.
However, the cannabis sector is still growing and, as such, there is a lot of uncertainty, especially regarding regulations. Canada may be the first industrialized country to legalize weed, but the US remains an important market which should have a clear official position in the industry.
After the clearance of hemp cultivation in the US, HEMP has actively engaged in various expansion activities to exploit the resulting demand. By the time the hemp legalization legislation fell into place, HEMP was one of the
At the time of writing, the stock has finally touched $0.0206; a value is last seen one year after the company went public in July 2009. Since 2014, the stock has stayed in sub-zero regions largely due to the uncertainly clouding the cannabis industry. Therefore, one would have expected the stock to shoot to all-time highs once the industry gained official federal clearance to operate within the US borders.
Nonetheless, it seems the market is playing a wait-and-see game where decisive action by the authorities like the lifting of all barriers to cannabis to embrace the industry fully. This implies that investors are satisfied with the efforts by HEMP toward making the company profitable to shareholders.
About Hemp Inc
Based in Las Vegas, Nevada, Hemp Inc. is among the first companies to begin production of cannabis products from industrial hemp. The company utilizes its multipurpose hemp processing facility to develop products for both recreational and medical segments of the cannabis industry. In addition to processing cannabidiol, the company owns and operates an online outlet for marijuana-related news and entertainment. Previously known as Marijuana Inc., the company rebranded in 2012, four years since its founding.
Hemp Farming Legislation
For a long time, Hemp Inc. has been a staunch advocate of a blanket clearance by all States for farming of hemp across the US. Late last year, the Farm Bill enacted paved the way for this to happen but many states are yet to legalize the cultivation. However, the last few months have seen various states sign bills which would culminate in an environment of clarity regarding the legal status of hemp farming.
On May 14, Brian Kemp, the Governor for Georgia signed into law a bill which sought to allow hemp farming in the region. Contextually, Georgia is a critical region to the production of hemp in the country. For starters, the state has large expanses of farmland and a community of farmers who want to cultivate hemp. Georgia joins Texas and other 4o states in the US which have comprehensive legal frameworks which facilitate the farming of hemp.
In light of this, Hemp Inc. is at the forefront looking for partnership opportunities which farmers from these regions. According to Bruce Perlowin, CEO of HEMP, the signing of the bill provides an opportunity for the company to ramp up its production capability and capacity.
“The signing of this bill in Georgia also provides Hemp, Inc. the opportunity to begin the search for partnerships across the state and continuously add to our already robust list of ventures across the country,” Perlowin said.
Hemp Growing Competition
To further its pursuits in the cannabis industry, Hemp Inc. created the hemp growing competition, which will involve farmers in Arizona. Dubbed Hempathon, the competition will take up to 300 acres of designated land in Golden Valley. The primary endpoint of the activity is for the company to create joint ventures with farmers to increase its production capacity. Winners will receive a token, but they will first have to pay a $50,000 participation fee. The resulting joint ventures will be owned half by the company and half by the farmer. As such, they will split costs and revenues right in the middle.
From a strategic point of view, this is a well thought out play which will position Hemp Inc. as a premier player in the fledgling industry.
The cannabis industry is still taking its baby steps despite the euphoria around the industry. This is quite visible in the relationship between cannabis stocks and the market. Also, it is clear that HEMP has a clear long term strategy which should excite the market.
Once the market recognizes the potential inherent in the HEMP stock, investors should expect a massive rally which will potentially be record setting.
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Disclosure: We have no position in HEMP and have not been compensated for this article.
Hemp Inc (OTCMKTS: HEMP) Bulls Gaining Traction
Hemp Inc (OTCMKTS: HEMP) has struggled for direction after coming under immense bearish pressure, resulting in a 50% slide. In recent weeks, the stock has resorted to trading in a tight trading range of between $0.02 and $0.03, on the lack of catalysts to fuel the upward momentum. However, not anymore.
HEMP Catalysts And Price Analysis
A confirmation that the Company registered an 1800% increase in sales for the full year ended December 31, 2018, could as well be the catalyst to fuel a bounce back from current lows. The steady increase underlines underlying growth at a time when demand for cannabis products is on the rise.
The Company has also provided a 2019 outlook that underscores expected growth as management focuses attention and resources to transforming Hemp Inc. into a full-blown marketing entity.
With the stock currently, trading at the $0.02 level, a rally could be in the offing given the formation of a bullish spiking channel. The formation of higher lows in recent weeks signals a stock due for a correction higher as a bounce-back play.
The $0.03 mark is the immediate resistance level standing in the way of the stock spiking high in continuation of the emerging uptrend. Hemp finding support above the $0.03 level should open the door for it to make a run for the $0.04 mark, the next critical resistance level.
Above the $0.04 level, the stock would…
Marimed Inc (OTCMKTS: MRMD): MediTaurus Acquisition & East Coast Expansion Could Trigger Bullish Rally
Marimed Inc (OTCMKTS: MRMD) has taken a significant hit in recent months after a solid start to the year. The stock is already down, after a 40% plus correction from this year highs. While the pullback is a point of concern, the Company has served a string of catalysts that could fuel a bounce back from current lows.
MRMD Catalysts And Price Analysis
The confirmation that the hemp and cannabis operator is poised to acquire a 70% stake in MediTaurus is a development poised to strengthen the stock’s market sentiments. With the acquisition, MariMed will gain access to a robust portfolio of intellectual property patent for cannabis formulations.
The acquisition could not have come at a better time given that MariMed is fresh from reporting year over year increase in revenues as well as EBITDA growth for fiscal 2018. The Company has also inked a strategic partnership with Ilo Vapor for the distribution of its flagship product DabTab brand dablets on the East coast.
Amidst the string of positive developments, the stock has continued to edge lower after succumbing to bearish pressure. After a recent pullback, the stock is staring at critical support at the $2.40 mark. Above the support level, the stock remains supported for further upside action as a bounce-back play.
However, a violation of the $2.40 support level on further sell-offs could result in the stock edging lower in continuation of…