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 be well positioned to continue rallying on improved underlying fundamentals.
What Does Hemp Do?
Hemp is engaged in the production of products made from industrial hemp. The Company boasts of one of the largest commercial multi-purpose industrial hemp processing facility in North America. It also provides products and services to the medical and recreational marijuana industries.
Sales Growth Boost
Hemp Inc. delivering full-year sales of $1.96 million in 2018 up from 107,002 generated in 2017 is a milestone achievement that underscores robust growth. The 1800% year over year increase highlights the Company’s foothold in the highly competitive industry.
Chief Executive Officer, Bruce Perlowin, attributes the robust sales growth to the building of solid hemp infrastructure that was not inexistent in the previous years.
“We’ve invested heavily to build this infrastructure, which currently consists of 9 divisions, as you’ll read below. I liken Hemp, Inc.’s business model to that of the Amazon.com model where today the richest man in the world plowed all their operating capital and profits back into building the infrastructure. “We’re hitting the market hard with massive revenues generated from massive sales,” explained Mr. Perlowin.
In a bid to accelerate sales growth in the second half of the year, the management intends to focus on strengthening marketing operations instead of building a massive infrastructure. By focusing on marketing, the management intends to transform Hemp Inc. into an operating company from a developmental stage company.
Enhancing Hemp Production And Marketing
Hemp Inc. remains well positioned to make good use of the growing demand for cannabis products in the market, at the back of the ongoing evolution. The Company boasts of two hemp-processing facilities. One of the facilities located in Spring Hope North Carolina us ranked as one of the largest hemp-processing center in the western hemisphere.
The North Carolina facility is operating full time, processing millions of pounds of unique kenaf used in the manufacture of all green natural loss circulation materials. The Company is also in the process of building two other production facilities in a bid to ramp up production capacity.
In addition to ramping up production, Hemp Inc. is also enhancing its marketing operations in a bid to cater to the growing needs of the cannabis market, poised to reach $22 billion by 2022. The Company has so far formed a joint venture with retail store Hemp Healthcare in Dolan Springs Arizona to sell high-quality cannabidiol as well as hemp-based products.
Hemp Inc has been under immense short selling pressure if a 50% plus slide since the start of the year is anything to go by. The slide has come even on the broader cannabis sector trending higher after a roller coaster 2018. However, the stock appears to have hit bottom and due for a correction higher.
The Company reporting an 1800% year-over-year increase in sales is a development that should continue to strengthen the stock’s sentiments in the market. For investors eyeing opportunities in the stock then it might be wise to wait for the stock to rally and find support above the $0.03 mark.
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Disclosure: We have no position in HEMP and have not been compensated for this article.
Is CytoDyn Inc. (OTCMKTS:CYDY) A Buy?
CytoDyn Inc (OTCMKTS:CYDY) has been making big moves lately, which have propelled the stock from December low of $0.270 to new highs. Notably, CytoDyn’s surge has come on significant volume as well, a clear sign of strong investor interest in the stock.
The excitement in CytoDyn stock that we are witnessing right now comes as the company has taken a leading role in the fight against the deadly Wuhan coronavirus. Moreover, investors have started pouring on CytoDyn stock as the company advances the development of its lead drug candidate as a treatment for about two dozen different cancer types.
Before we delve into the details, here is a brief profile of CytoDyn for those investors who may have just come across this company for the very first time.
CytoDyn operates in the healthcare sector as a biotechnology company. It is engaged in developing innovative treatments for a broad range of medical indications. Its lead product candidate is leronlimab (PRO 140). Clinical trials of leronlimab are ongoing for conditions such as HIV and multiple cancers with impressive results already attained. But CytoDyn is expanding its target conditions with leronlimab in the wake of the outbreak of the Wuhan coronavirus.
Here are some of the recent developments at CytoDyn that have excited renewed investor interest in its stock.
CytoDyn’s leronlimab under consideration as Wuhan potential coronavirus treatment
CytoDyn’s lead drug candidate leronlimab (PRO 140)…
County Line Energy Corp. (OTC: CYLC) Could Soon Become the Next Household Name in the Actively Growing Legal Marijuana Space with its Revolutionary Grow Box Systems!
After a terrible 2019, pot stocks are positioned for a massive turn around this year and County Line Energy Corp. (OTC: CYLC) could experience one of the biggest bounces of them all!
There’s no denying that 2019 wasn’t the best year for marijuana-related stocks. In fact, pot stocks had a very sour year. From its March peak, the marijuana-focused ETFMG Alternative Harvest ETF (MJ) lost half its value before the year even ended.
But what a start to 2020 for cannabis on Wall Street… There has been a monstrous rebound already with marijuana-related ETF’s soaring!
In just one week in January the Horizons Marijuana Life Sciences Index ETF saw an increase of 19.11%, the ETFMG Alternative Harvest ETF gained 13.87%, and the Cannabis ETF advanced 16.9%.
“Cannabis stocks seem to be slowly inching their way out of the bear market they’ve been in,” commented Debra Borchardt, CEO of Green Market Report. She added, “We’re seeing companies make adjustments to cultivation plans, restructuring debt and merge for strength as markets open more slowly than planned. Improvements in valuations are sure to ease the concerns of many investors.”
From an oversupply of marijuana and little progress towards federal level legalization, 2019 was a bust for the arena. 2020 however could be shaping up to become a tremendous year for cannabis stock gains.
The industry is politically driven and this is an election year. It also helps that nearly all of the…
Rainmaker Worldwide Inc (OTCMKTS:RAKR) Looking For Bagholders
On the OTC Markets, there are a lot of pump and dumps. Investors need to protect themselves from these types of scams and one, in particular, is Rainmaker Worldwide Inc (OTCMKTS:RAKR).
OTCMKTS:RAKR Price Action
While the price action recently has been positive, it’s just a matter of time before RAKR is trading in the double zeros again. It’s not a question of if it will happen, but when it will happen.
About Rainmaker Worldwide
According to its profile, Rainmaker Worldwide Inc. is headquartered in Peterborough, Canada, with an innovation and manufacturing center in Rotterdam, Netherlands. Its patented water technology provides economical drinking water wherever it’s needed and at scale. Rainmaker builds two types of energy-efficient, fresh water-producing technologies to participate in this opportunity. 1. Air-to-Water, which harvests fresh water from humidity in the atmosphere. 2. Water-to-Water, which transforms seawater or polluted water into drinking water.
Lack of Fundamentals
The biggest concern facing investors is the lack of fundamentals. OTCMKTS:RAKR has a current market cap of $41 milli0n, but reported just $1000 in sales in the quarter ending September 30, 2019. Making matters worse is that Rainmaker burned through $524,000 in the quarter. Throughout its history, Rainmaker has lost $14.7 million.
EU Horizon 2020 Project and $2.5 million grant
Last September, Rainmaker touted the award of the European Union (EU) Horizon 2020 Project for Rainmaker’s Water to Water Product. According to the press…