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Traders and Investors,

A trade idea popped up on our screener this week, and it's one you must see now.

We suggest you get HempAmericana, Inc (HMPQ) on your screen immediately.

The marijuana sector is once again going completely nuts. Just take a look at how a few names have performed recently...

- LXRP is up 160% in the past four trading sessions
- CANN has gone from around $1.50 to over $5, a 233% gain, in December
- CGRW is up 66% in December

Having risen so dramatically, these trades have now run their course, so naturally traders are now on the hunt for the next "pot play" that could run big.

HMPQ could be on every trader's radar in the coming days as this sector continues to heat up and market participants search for new trade ideas.

First of all, HMPQ recently had a massive breakout from under $0.01 to $0.02 for 100%+ gains in just two days. It has since pulled back to just under $0.01, patiently riding the 100 day moving average.

And given the relatively small market cap of HMPQ (especially compared to others in the sector), we think the potential upside could be big.

Even Barchart.com agrees, giving HMPQ a solid technical rating.



Just yesterday the Company announced it has begun negotiations with high-volume CBD Oil distributors around the country. The company is locking up a distributor network in advance of moving into full production at its Augusta, Maine location in Q1 2018.

CEO Salvadore Rosillo stated, “Distributor networks are paramount to our success. While our focus has been to establish a world class extraction facility, monetization is going to be a product of our distribution network going forward.”

The company’s new Super Critical CO2 Extractor Machine is now in the manufacturer’s production cue with a 60-day delivery schedule. Recently ordered from Vitalis Extraction Technology, Inc., the 200-Liter machine has an unmatched productive capacity and represents the largest machine ever produced by the manufacturer.

The production schedule will allow multiple distributors to push product out across the country as growth in the space continues to heat up. The global CBD Oil market is set to grow at a CAGR surpassing 39% through 2021, according to recent research by London-based Technavio. Product differentiation is becoming a driving force.

Previous to this news, HMPQ announced that the Company has fully executed the lease for a massive 17,000 square foot state-of-the-art facility in Augusta, Maine, which will serve to house the Company’s principal CBD extraction and production operations beginning December 1, 2017.

The CEO commented "We know the game here is going to be about scaling. That’s why we have the biggest extractor machine ever assembled by Vitalis on the way. That's why we have been pushing every factor to max out capacity. This facility will expandable to 42,000 sq ft, and we may need it.”

About HMPQ...

HempAmericana, Inc (HMPQ), as the Company name suggests, is in the marijuana business. Specifically, HMPQ researches, develops and sells products made of industrial hemp and is currently in the rolling paper and CBD oil business using the brand name Weed Got Oil.

Hemp is the commonly known name for the cannabis strains cultivated for industrial/commercial or non-drug and has become an agricultural commodity that is utilized for the production of food, beverages, cosmetics, personal care products, nutritional supplements, fabrics, textiles, yarns, spun fibers, paper, and even construction and insulation materials.

At this time the Company's main product is its brand of hemp based rolling papers known as "Rolling Thunders" that are to be used for the smoking of tobacco and other legal substances.

The Company now plans to become a leader in the CBD oil market by establishing a laboratory for the extraction and research of the oils contained in the hemp plant. HempAmericana also researches, develops and sells products made of industrial hemp and intends to explore other possible business avenues relating to the legal use of the Cannabis plant.

In addition to its hemp-paper products, HMPQ also distributes hemp hearts, a natural, shelled hemp seed supplement, and pure hemp oil or cannabidiol oil that are concluded by studies to have positive benefits to the body including aiding in the treatment of disease and injury, regulate blood sugar and control blood pressure. The company also has recently Expanded its Hemp-Product Line with the addition of an all-natural, hemp-based, 8-hour energy drink, known as Mama Coca, that will contain all the vitamins and minerals extracted from hemp oil – specifically linoleic acid, an essential fatty acid that body does not produce and must be obtained through food or drinks. Expansion to the line also included the Recent Development of Hemp Chocolata, a 100% organic chocolate bar that will partake in the annual $128 billion global chocolate sales.

Furthermore, with help of a Product Distribution Veteran, Mr. Ezra Cohen, the company will move forward in obtaining shelf space in health related and organic supermarkets, such as Trader Joe’s and Whole Foods, and vending distribution for its energy drink, Mama Coca.

You can learn more about HMPQ at their website http://www.HempAmericana.net.

The Massive Market Size...

The Hemp Industries Association (HIA) reports that total U.S. retail sales of hemp products of nearly $600 million in 2015,12 which includes food and body products, clothing, auto parts, building materials, and other products (Figure 2). And according to recent research by London-based Technavio, the global CBD Oil market is set to grow at a CAGR surpassing 39% through 2021, and according to a recent study published in Forbes. Hemp Business Journal estimates the hemp industry will grow to $1.8 billion in sales by 2020.

HIA further claims that growth in U.S. hemp retail sales averaged more than 15% annually over the 2010-2015 time frame. Much of this growth has been attributable to increased sales of hemp-based body products, supplements, and foods. Combined, these categories account for more than 60% of the value of U.S. retail sales.

Vote Hemp and Hemp Business Journal have also reviewed sales of clothing, auto parts, building materials and various other products, and estimates the total retail value of hemp products sold in the U.S. in 2016 to be at least $688 million.

Of this $688 million hemp market, Vote Hemp and Hemp Business Journal estimate that hemp foods constituted 19% ($129.3 million); personal care products constituted 24% ($163 million); textiles constituted 14% ($99.5 million); supplements constituted 4% ($26 million); hemp derived cannabidiol or CBD products constituted 19% ($130 million); and hemp dietary supplements constituted 4% ($26 million); industrial applications such as car parts constituted 18% ($125.5 million); and other consumer products such as paper and construction materials accounted for the remaining 2% of the market.

"Vote Hemp estimates the total retail value of all hemp products sold in the U.S. to be at least $688 million for 2016," said Eric Steenstra, President of Vote Hemp.  "To date, 32 states have passed legislation that allows hemp farming per provisions set forth in the 2014 Farm Bill, and the U.S. remains the largest consumer market for hemp products worldwide. However misguided drug policy still prevents our farmers from cultivating hemp at the scale needed to meet consumer demand, so instead nearly all the hemp to supply the U.S. market is imported. We need Congress to pass federal legislation to allow commercial hemp farming nationally, to let our farmers and American business take advantage of the robust economic opportunity hemp provides," continued Steenstra.


Our Conclusion...

The marijuana sector is making a massive resurgence right now, and trader's can't get enough of this Santa Clause Rally.

As many of the trades are now over after running so big, traders will be searching for the next "pot play" to move.

HMPQ has a history of making big moves, and should be on every trader's radar in the coming days. 

With strong 100 day moving average support at just below $0.01, HMPQ could be ready to breakout big any day now. 

And recent news are strong catalysts for the market to digest.

So make sure you do your research and be ready to play.

All the best.

SmallCapMomo.com
 

Remember our key trading rules when trading. Capital preservation is key. Keep your stops tight, and if things don't go your way, cut your losses and look for another opportunity.