As we comb through the rubble of the hemp, cannabis, and CBD space, we are starting to find a number of stories that appear to represent serious speculative value, with HempAmericana Inc (OTCMKTS:HMPQ) possibly moving to the top of that list as of its modest and forthright, yet impressive press release out this morning.
The tone of the release is something we really like to see from a company in this space at this stage of development – this is a company that appears to be rejuvenating around a refreshed sense of brass-tacks purpose. The point of the release was the announcement of a multi-pronged set of new initiatives to expand marketing, distribution, and customer service.
That makes a lot of sense given that the company already has high marks for its equipment, facility, and inventory. The key now is to monetize that production and capacity, which is exactly what appears to be in motion now.
Salvador Rosillo, CEO of HempAmericana, summarized it well: “After confronting a series of obstacles and falling behind our outlined schedule, we have mapped out a path to drive improved performance in the months ahead. We believe we will be able to mobilize multiple factors to boost our footprint in terms of potential customers we can reach, distribute to, and retain over time.”
Getting Down to Business
One of the big developments recently announced by the company was the completion and launch of its ecommerce portal, which has the capacity to take payment through all the most convenient methods.
That’s actually less common than you might think given the stigma stuck in place for banks doing business with anything and everything derived from the cannabis plant. That narrative is evolving, but history continues to hang on and make life difficult for companies in this space. HMPQ is past that obstacle and sitting on strong productive capacity.
That means it’s time to get serious about distribution and marketing, and then retaining the customers it lands.
This next phase is going to apparently leverage a relationship with Alibaba (BABA), the China-based ecommerce and B2B supply chain giant. According to the release, we will get more details on this relationship soon, but the big point is that the onboarding process is underway already, meaning that HempAmericana will be on the Alibaba B2B platform likely very soon. We would assume we will hear about when that process has reached an official result.
Another big piece of the release was news that the company has acquired a huge pool of domain names with some conceptual relevance to the CBD marketplace. That sets up an affiliate marketing network to drive traffic to the ecommerce portal. This dovetails nicely with a note about developing targeted marketing lists, improving retention through customer service improvements, and a discount pricing model for market penetration.
The Intangibles
Finally, as noted above, we really like the shift in tone here. The company has a history of overpromising and underdelivering. But the tone of its recent communications bears a sense of a renewed commitment to creating incremental and sustained success from operations.
And why shouldn’t it succeed? There are a lot of built-in advantages in place here, including some of the top equipment and extraction/production resources in the business. And the target market is still one that is inescapably tied to a very long-term bullish growth trend according to just about every analyst out there who pays any attention to the CBD, hemp, and cannabis space.
The company’s release this morning concluded with a quote from management that captures all of these ideas in tidy fashion:
“We understand the terrain in this market probably a lot better than most of our competitors at this point because we have been through a battle to get to this point. It hasn’t been ideal. But that process has also equipped us with hard-won knowledge capital while the long-term CBD growth thesis remains completely intact.”
This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.
