Hemp Inc (OTCMKTS:HEMP) started the New Year on a roll, spiking high after coming under pressure in the last weeks of 2018. The upward momentum, however, appears to have lost its momentum a move that has seen the stock edge lower. The sell-off has come as a surprise as the overall cannabis sector has turned bullish. The company is also fresh from posting a string of positive developments that in most cases would have supported further movements on the upside.
Hemp Inc Prospects
The formation of a double bottom in recent price action activity could signal a potential change in the direction of trade, after the underperformance of the past few months. Fundamentals have turned positive in recent week’s all but affirming Hemp Inc. growth metrics.One of the developments affirming the company’s growth metrics is the announcement of the further expansion in the tourism market. Hemp Inc. has also confirmed plans to add Digipath hemp potency testing laboratories on its production sites across the U.S.Legalization of the 2018 Farm Bill is another development that once again underscores the company’s long-term prospects as it continues to expand its footprint across the nation. While market reaction to the positive developments has not been the best, one cannot dispute the fact that Hemp Inc. has the potential to succeed in the hemp industry. HEMP Daily ChartThe stock is currently trading at the $0.03 mark as short sellers remain in firm control. A bounce-back could be in the offing as the stock is flirting with a key support level. Above the $0.03 mark, the stock remains well positioned to make a run for the $0.04 mark. A rally followed by a close above the $0.05 mark should open the door for the stock to continue powering higher.
About Hemp Inc
Hemp Inc. casts itself as a global leader in industrial hemp production. The company produces a wide array of products made from industrial hemp. It also offers consulting services to medical and recreational marijuana industries.
Arizona Cannabis Opportunity
Hemp Inc. looks like a potential bounce back play even though it has underperformed over the past few weeks. While the stock is down by about 30% from its 52-week highs, a string of positive developments in recent weeks, support a rally from current lows.The company is fresh from inking strategic partnership through one of its subsidiary that paves the way for it to expand its footprint in Arizona. The formation of a joint venture with Hemp Healthcare paves the way for the company to sell high-end cannabidiol and hemp in Dolan Springs Arizona.Located off Highway 93 in Arizona, Hemp Healthcare is a retail storefront boasting an array of renowned CBD and hemp products. The company’s product line is made up of CBD infused shampoos lotions among others.
“The joint venture between Hemp, Inc. and Hemp Healthcare will be a monumental stride for not only the storefront but also for Hemp, Inc., as we make our way into the tourism market. The consistent passing of individuals through this town, on their way to one of the most popular attractions in the United States, will only increase the awareness of high-end CBD and hemp-based products, including our own brand," said Hemp, Inc. CEO, Bruce Perlowin.
Digipath Laboratories Deal
Hemp Inc. production sites have also received a boost on Digipath agreeing to furnish them with fully functional potency testing laboratories. Under the terms of the agreement, Digipath is to oversee the construction and build out of hemp potency testing laboratory in three locations.According to the company’s Chief Executive Officer, Digipath is the logical developer for a standalone laboratory at all of the company’s hemp production facilities.
“These new Digipath labs will not only test all of our hemp products but will also be available for all of the local hemp farmers in each area to do their own required testing,” said Mr. Perlowin.
Bottom Line
Hemp Inc boasts of robust hemp production capabilities thanks to its 85,000 square foot multi-purpose hemp processing facility. Its 4,500-acre hemp growing eco-village in Golden Valley Arizona is the most sophisticated. Its edge in hemp cultivation production and processing all but affirms its growth prospects especially with the passing of the 2018 Farm Bill.While the stock has underperformed over the past few weeks, there is no doubt that it has the potential to bounce back as fundamentals continue to edge higher. The $0.03 level has emerged as a key support level from where the stock is likely to continue powering higher in line with the bullish momentum in the industry.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.Image courtesy of Kevin Harber via Flickr
Discover Hidden Gems
Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.
