Yesterday the stock price of Hemp Inc (OTCMKTS:HEMP)opened higher than the closing price of the previous trading session, but then declined down on the chart and made a low of the day of $0.02. Whatever strong support it enjoyed in the early trading session quickly disappeared however and the ticker declined back down. The stock price failed to close in the green posting a decline of more than 4% and finishing the session at $0.235.
The daily volume posted by the stock remained below the 30-day average of 12.04 million. It didn’t support a significant move either side on the chart. The annual financial report for 2014 was filed a couple of days ago. It was unable to stop the stock from declining further down. Considering the performance, the decline was quite surprising for some investors.
Hemp Inc posted annual report couple of days ago which stated the company cash figure was $243,000. IT recorded total current assets of $3.5 million and $1.4 million in total current liabilities. The sales came at $7.95 million and net loss was $904,000. If an OTC traded stock posts almost $8 million as annual revenue, the shareholders would expect the stock price to surge up the chart to make new highs. However, in case of Hemp, the things are different.
Hemp generated a major part of reported revenue in the first half of 2014. It amounts to $5.5 million in 1Q2014 and $2.3 million in the second quarter. It received the funds in the form of securities held for sale from the company’s numerous consulting clients. In the second half of 2014, the company posted revenue of less than $100 thousand. Also, the dilution of the common stock has been going on at the same pace. It is the reason the investors were not excited after the annual report.