Hemp, Inc. (OTCMKTS:HEMP) Plummets on High Volume
The hype around the medical marijuana stocks is big and Hemp, Inc. (OTCMKTS:HEMP) is riding it. After the increased interest that followed the CNN documentary in which Dr. Sanjay Gupta changed his opinion on the benefits from the medicinal use of marijuana we see another announcement that sparked the interest we saw in the end of last week.
The long awaited news that were behind this heightened activity came mid-day on August 29 when it was announced that federal law concerning the use of marijuana will no longer be above state law. If you have had an interest in the medical marijuana industry you would have known that until then you could still be prosecuted in states that allow the use of marijuana, both for medicinal and recreational purposes, under federal law.
The intraday chart from Thursday shows that HEMP‘s movement was almost identical with that of Medical Marijuana Inc. (OTCMKTS:MJNA). The session started slowly at $0.0145 and there were very few trades as the stock’s price moved in a seemingly straight line. That was until the news of the decision came. What followed was an instant increase in price and trades, which continued until the end of the day.
At the final bell the stock had gained 97% in value and went as high as $0.0265 per share. The amount of traded stock was well above the ticker’s average with a total of 39 million shares that helped generate an estimated $798 thousand in trade value.
The next sessions’ intraday chart was also identical to that of MJNA as the stock gapped up and opened at $0.0295. The ticker reached a peak of $0.034 in the first minutes and then started to slide down pushed by the huge amount of traded stock.
And just like it happened with MJNA, after the morning dumping fiasco that brought the price down, things quieted and the trading through the rest of the day was low. The company managed to close the session at $0.018 per share or 32% down from the previous day. The total amount of shares that had switched hands came to a mind-blowing 119 million, which helped generate a trade value of $2.45 million.
It can’t be said for certain where the stock of HEMP will go, but there is the possibility that today’s closed marked might cool off the interest in the medical marijuana industry. It is all for tomorrow to show, but be sure to do a lot of due diligence and weigh out the risks before going for any medical marijuana stock.