TOTALLY HEMP CRAZY (OTCMKTS:THCZ) posted strong gains on the charts, driven by the updates that sales of its products are encouraging. However, in last week the stock price lost its momentum and ended the week in red zone. It would be something of a paradox to claim that this momentum was not expected.
Claims or Facts
It stands true that the company claimed that its products are recording strong sales, but there is nothing on papers that can support these claims. The company need to submit some official filings to highlight the success of its products with Amazon.com, Inc. (NASDAQ:AMZN) related programs.
There are no filings documenting the sales of company’s recently launched products. Therefore, it becomes extremely tough for investors to consider the claims as facts, and stay invested in Totally Hemp stock. After the recent up move on the charts, investors are considering it wise to book some profits and wait on sidelines till the time official sales report is released by the company.
It is the reason why the market has even ignored the latest press release stating that Totally Hemp has improved its leadership team by appointing new advisory director, Harry Drnec. The news of extension of distribution network also failed to create any optimism among investors.
TOTALLY HEMP CRAZY (OTCMKTS:THCZ) financials don’t represent a rosy picture as the company has minimal assets and revenues. The problems are aggravated with rising short term debt, which in future can lead to dilution problems for the shareholders. The only encouraging news as of now is the extension of distributors’ network that markets Rocky Mountain High beverages. The extension of the team indicates that Totally Hemp is taking necessary measures to extend its product reach in the new markets. The stock price of Totally Hemp dropped below the long-term channel, indicating a long-term correction.