As you may know, the analysts at Cannin are constantly evaluating the next best hemp stock investment opportunities. With HempAmericana, Inc. (HMPQ) gaining 10% on the week, we wanted to cover this hemp stock for our audience. But should you add HempAmericana stock to your watchlist? Let’s take a closer look at the fundamentals and the technicals to see if there is a buy opportunity with HempAmericana.
HempAmericana is a development stage company, which focuses on research, development and sales of products made of industrial hemp. Its products include rolling thunder smoking paper, and CBD oil. The company’s brand includes Weed Got Oil.
Related: Hemp Stock HMPQ Soars 123%
HempAmericana sells hemp products and accessories. They also sell organic fiber and heart, paper and seeds. Their offerings include soaps, detergents, candles, beverages, topicals, paper towels, plates, and toilet paper. The company does not operate any cultivation but they do have a large scale CO2 extraction facility (17,00 SF) in Augusta, Manie. They sell most of their products through their online marketplace and through Alibaba.
The company reported in 2020 that they had $200,000 of total cash. Operating cash flow is negative $466,570 with debt at $201,680. They haven’t reported updated financials in over a year! Ouch. The risks of investing in this company are higher than most of their competitors given low to no revenue, lack of diverse management and little to no branding. But should you add HempAmericana stock to your watchlist?
Follow Stephen Goldman as he evaluates HempAmericana with moving averages and the Awesome Oscillator.
Bottom Line: Should You Add HempAmericana Stock to Your Watchlist?
HempAmericana was founded in 2014 and produces CBD and industrial hemp based products from their Augusta Maine production facility. They sell their products mostly via online platforms such as hempamericana.store.
You may not have heard of HMPQ and they don’t really make it a point to change this fact. Their last press releases were in early 2020 and they consisted of mainly statements that they were getting their products tested at third party labs. This is pretty ridiculous when all their competitors regularly test as part of standard product safety and don’t need to brag about it. The weakness of their marketing is only the first red flag though.
The company recognized their struggles and put forth the following initiatives: discounting their products, selling their products on Alibaba, affiliate marketing (Smart Decision and others), and better customer service. Nothing earth shattering here. Will it work? In short, no.
Their reported total revenue on their most recent SEC filed form 1-A was $4,917! You won’t see numbers like that often at cannin.com. Total assets were $2,277,775 with total liabilities at $3,595,816. Operating cash flow is $-466,570. They have no cash, no sales, and are discounting prices and paying for affiliate marketing.
They popped over 100% on news that they would become current again on the OTC (report financials etc), and CanninBot detected and predicted it. That was exciting. Now the SEC is stepping in to sue the mgmt team. This one is a dead stock. There is nothing else exciting going on for HMPQ. For all these reasons we rate HMPQ as Weak and we do not recommend adding HempAmericana stock to your watchlist.
Cannin Investment Group: Your Hemp Stocks Experts
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