Hemp Stock (OTCMKTS:HEMP) Climbing The Ladder

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.

Bottom Line

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.

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Disclosure: We have no position in HEMP stock and have not been compensated for this article.