Things have not been rosy for Hemp Stock (OTCMKTS:HEMP) going by the price action activity over the past year. The stock has lost more than two-thirds of its market value after feeling the full force of short-sellers. The stock remains engulfed in a long-term downtrend and in dire need of breathtaking catalysts to bounce back from all-time lows.
Hemp Stock Price and Catalysts Analysis
Hemp underperformance coincides with a sell-off wave that gripped the marijuana sector in 2019. A good number of stocks shed a significant amount of market value even as the broader stock market continued to record higher highs. Hemp Inc. underperformance might as well stem from the lack of substantial updates needed to validate the company’s long-term prospects.
However, the stock appears to have hit a bottom and due for a correction higher as a bounce-back play. Supporting a potential break out from current lows is the passing of friendly legislations that continue to unravel new opportunities in the hemp industry. Likewise, the company has continued to strengthen its product line, having also made strategic moves in new markets in pursuit of revenue opportunities.
That said, it does not come as a surprise that the stock has already started showing signs of edging higher after languishing at the lower end of the $0.01 level. The immediate resistance level standing in the way of the stock breaking out from current lows is the $0.02 level.
A rally followed by a close above the $0.02 level should revitalize Hemp stock sentiments, paving the way for it to continue powering higher. Similarly, failure to take out the $0.02 level will leave the stock susceptible to further drops in continuation of the long-term downtrend.
About Hemp Stock
Hemp Inc. casts itself as a leader in industrial hemp. The company specializes in the farming and processing of industrial hemp. Likewise, it is also engaged in the extraction of hemp CBD oil as well as educating and empowering hemp farmers and entrepreneurs.
Hemp Insurance Boost
Hemp Inc. has, in the recent past, echoed its support for the passing of a new crop insurance program targeting hemp growers in select counties across 21 states. Under the Nursery Value Select insurance program, hemp will be insured as long as it is grown in accordance with federal regulations.
According to the Chief Executive officer, Bruce Perlowin, the insurance option should help bring hemp closer to other commodity products in addition to reducing risks for producers such as Hemp Inc.
The passing of the new hemp insurance program comes hot on the heels of Hemp Inc., completing two harvests. The company has also completed the drying of high cannabidiol CBD A and B buds in Medford, Oregon.
“The hemp we harvested and are processing is of the highest quality. We have been diligent every step of the way—from selecting the seed to deciding what materials our hemp will be rolled up and packaged in. At the moment, we are in the middle of curing the colas but are looking forward to sharing these carefully processed buds with the public when we start producing the King of Hemp pre-rolls,” said Mr. Perlowin.
Hemp Flower Opportunity
Going forward, Hemp Inc. is planning to take advantage of the huge market opportunity brought about by vaping illnesses as well as the effects of consuming tobacco. The company is especially looking to take advantage of the growing demand for smokable hemp flowers as people seek alternative methods of consuming hemp. The hemp flower market presents a $70 million-plus market that the company can make good use of.
Likewise, the company has already acquired trademark registration for Hemp Smokable products after registering it with the federal government Patent and Trademark office. The company can now ramp up its operations in pursuit of opportunities in the Cannabidiol market poised to grow to $23.7 billion through 2023.
As Hemp stock moves to affirm its position as a global leader in industrial hemp, increased hemp capacity, as well as efficiencies in production, should be expected. Likewise, the company should ramp up operations in pursuit of revenue opportunities in the cannabis sector.
While Hemp stock has underperformed a great deal over the past year, the stock looks to have hit a bottom. A good start to 2020 affirms the fact that short sellers are slowly exiting positions paving the way for bulls to push the stock higher.
We will be updating our subscribers as soon as we know more. For the latest updates on HEMP stock, sign up below!
Disclosure: We have no position in HEMP stock and have not been compensated for this article.
Kona Gold Stock (OTCMKTS:KGKG) Down But Not Out
Kona Gold Stock (OTCMKTS:KGKG) has plunged to its lowest price in more than a year. That is the result of a downtrend that kicked off in earnest in August.
If we look at Kona Gold’s investor relations site and go to the press release section, we see that the company has made several announcements about its business activities and developments since August. However, none of these announcements have been able to halt the slide in the stock.
About Kona Gold stock
Kona Gold Solutions is a Delaware corporation that operates several wholly owned subsidiary businesses. Through its subsidiaries, Kona Gold is engaged in the production and sale of hemp-based products, mostly beverages.
Kona Gold stock has a track record of bouncing back from its lows
Kona Gold has a history of bouncing back from its lows. In September 2018, Kona Gold was trading at $0.011, lower than its current price. But the stock bounced back and was trading at $0.118 in November, delivering a return of more than 970% in a space of just two months. In January 2019, Kona Gold was again at one of its lows at $0.47. But by February, the stock was up at $0.91, returning 94% in a period of just about one month. In April 2019, Kona Gold was down at $0.72. But in a space of about one month, the stock had sprinted back up at $0.143,…
Hemp Inc (OTCMKTS: HEMP) Bottoming Out
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…
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…