Expanding CBD hemp cultivation and processing infrastructure is the catalyst fuelling Hemp Inc (OTCMKTS:HEMP) upward momentum. Over the past one month, the stock has rallied by more than 100% at the backdrop of renewed and strengthening investor confidence in the company’s long-term prospects.
Hemp Inc Price Analysis
The recent spike comes at the back of a ferocious sell-off wave that went on to erode all the gains accrued the better part of the year. However, the stock is back to winning ways after the recent spike higher.Price action activity points to further movements on the upside, amidst a high turnover in traded shares in the market. Given that the stock has traded in a tight trading range of between $0.02 and $0.04 a share, for the better part of the year, it faces immediate resistance at the $0.04 a share. HEMP Daily ChartA breach of the critical resistance level could open the door for the stock to continue climbing high on its way to registering a new 52-week high. However, it will take a groundbreaking catalyst for the stock to power through the critical resistance level, as it has struggled to do so on two attempts this year.On the downside, Hemp Inc. stares at the $0.02 mark as a fundamental support level. A breach of the critical support level would leave the stock vulnerable to further drops on its way to recording new all-time lows.
What Does Hemp Inc Do?
Hemp Inc. specializes in the business of producing industrial hemp. It also offers a wide range of products and services to the medical and recreational marijuana industries. The company also operates a website that provides entertainment and news, touching on developments and happenings in the broader marijuana industry.
Hemp Inc Expansion Drive
Hemp Inc. has caught the attention of investors, depicted by a high turnover in traded shares, on expanding its operational footprint nationwide. The expansion is part of the company’s push for market share in a market poised to hit the $591 million mark this year.The nationwide expansion drive is supported by the company’s multipurpose industrial hemp processing facility. The company has also inked strategic partnerships with farmers across the U.S most of whom it hopes to provide hemp education as well as the infrastructure needed to manufacture a viable hemp crop.The expansion drive is helping the company diversify its portfolio to include markets that are beyond current headquarters in North Carolina. The result should be an increase in revenues on targeting a broader customer base with a variety of CBD products.
“Hemp, Inc. is committed to meeting market demand for high-quality hemp and derived products, building on our strategic operations throughout the country to ensure Hemp, Inc.’s standing as one of the premier growers, suppliers and manufacturers of hemp to the U.S,” said CEO Bruce Perlowin.
Cannabis Production capacity
The company has already begun harvesting more than 100,000 pounds worth of industrial hemp from some of its farms in Oregon. The huge harvest should go a long way in addressing the growing demand for CBD products in the market, and in the process generate significant value for the company.New Mexico passing proposal 1 has yet again opened a window of opportunity that investors appear to be taking note of. The latest approval paves the way for farmers in the state to cultivate hemp at an industrial level.Companies seeking to develop their footprint in the industrial hemp marketplace in the state will now be able to align with Hemp Inc.’s proven expertise and state of the art hemp processing facility.
“We are delighted to be at the forefront of the re-emergence of the industrial hemp industry. This opportunity offers us the privilege to boost the economies of rural U.S. towns that have found it nearly impossible to turn a profit growing wheat or corn as a small farm,” said CEO Bruce Perlowin.
Bottom Line
Recent development provides clear evidence that Hemp Inc. remains well positioned to be a success in the industrial hemp sector. The nationwide expansion drive affirms the company’ commitment to pursuing revenue opportunities in new markets, key to strengthening bottom line and generating shareholder value.Being an early mover in the hemp business, Hemp Inc. remains well positioned to accrue a substantial amount of value given the deals and strategic partnerships it continues to ink. The stock has already started spiking high on investors taking note of the company’s growth metrics. That said the stock is an ideal pick for investors looking to gain some exposure in the hemp business given the huge prospects of success at hand.We will be updating our subscribers as soon as we know more. For the latest updates on HEMP sign up below!Disclosure: We have no position in HEMP and have not been compensated for this article.
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