Discover all the key statistics from Hemp, Inc (HEMP), including valuation measures. First, the company uses a large number of stocks to pay for expenses, which dramatically increases the stock count. This 85,000 square foot facility, located in Spring Hope, North Carolina, processes kenaf full time into lost circulation material, which Hemp sells to the oil and gas industry. Hemp shows a large number of preferred shares provided by the company to finance its properties, equipment and operations.
The article has now been updated to clarify that the figures used are based on the weighted average number of common shares outstanding. Although Hemp is increasing its revenues at a faster rate than its competitors, its gross profit margin and net income losses do not justify this assessment. That said, the main issues are the gross profit margin and the enormous amount of losses reported by Hemp. Finally, Hemp does not publish its financial information on the OTC Market website, which should concern most investors.
First of all, the company uses too many stocks to pay its expenses, which is causing an enormous dilution of shares. Keep in mind that the weighted average number of common shares outstanding is greater than the total amount of shares outstanding. While the market seems to be reacting to the website's press releases, investors should understand that hemp isn't processed properly. The company seems to be issuing an enormous amount of shares, something that most shareholders should not appreciate.
Using the weighted average of outstanding common shares, the company is trading at 403 times sales and the competition is trading at between 9 and 209 times sales. Investors should check out one of the founders' Facebook, which provides substantial information about Hemp's operations. While Hemp generates higher revenue growth than its peers, both its gross profit margin and net income losses should not justify its current valuation.