HEMP, INC.(OTCMKTS:HEMP) Surges Up After The Drop
Driven by the momentum it gathered around the holidays, HEMP, INC.(OTCMKTS:HEMP) got a flying start into the new year. Its ascent was arrested on Jan. 9 and 10, but during Monday’s trading session their stock shot right back up.
The fact that the company crashed on two consecutive days, 24% and 31% respectively, would certainly be troubling for buyers in any other circumstances. As it is now, with investors driven more by the marijuana hype than anything else, market turbulence is nothing out of the ordinary.
The 46.67% jump which HEMP made on Jan. 13, is impressive, although it can’t really be called an achievement on its part, even though it did take their market value up to $0.0594 per share.
Admittedly some of that growth can be attributed to the company’s announcement that it will be selling VOIPNetX Inc., a development stage cellular and VOIP telecommunications company and one of Hemp, Inc.’s non-core business divisions. The buyer is Apex 9, Inc., a Delaware fully reporting company. HEMP justified the future transaction as a necessary step, that would prevent distractions of management from its focus on the hemp industry.
Although the news can certainly be taken in positive light, it rang somewhat hollow because of the fact that almost no information on the purchase was announced.
Meanwhile, independent stock market analysts continue publishing menacing articles, and frankly what they’re saying for the most part sounds plausible. The market’s present volatility guarantees marijuana stocks eager investors the opportunity to reap amazing success, as well as staggering loss.
As it stands, “Let the buyer beware” certainly seems to be the motto most appropriate for the market’s present state. In-depth research and extensive due diligence is, now more than ever, advisory when dealing with marijuana stocks.
Cannabis Science Inc. (OTCMKTS:CBIS) is another marijuana related company that crashed more than 20% on Friday but seems to have stabilized its market value now.
