Hemp stocks are on investors' radars in 2019. The passing of the new US Farm Bill has legalized hemp entirely across America by removing its status as a Schedule 1 controlled substance and making it an agricultural commodity.
Now, the hemp industry is estimated to grow significantly in size; in 2018 it was valued at approximately $800 million USD, but by 2022, that number is expected to become over $20 billion USD. Not surprisingly, hemp stocks have reacted exceptionally well to this news.
With this in mind, we are looking at Hempco Food and Fiber today; arguably one of the most traded small-cap hemp stocks at present. Hempco is tapping into an emerging industry on the verge of exploding.
Hemp Stock: Hempco Food and Fiber (TSXV:HEMP)
To give you perspective, Hempco has added over 70% to its market cap since the Farm Bill passed. Now, it is worth $74.6 million CAD at press time.
Approximately 919,000 shares traded hands on Tuesday this week, indicating the stock's current popularity. This was an increase of 172% from its average daily trading volume.
Today, however, shares are down almost 10%, and currently selling for $1.22 CAD. Looking at this hemp stock though, this is simply a fluctuating period as investors figure out what way to move on this popular stock. HEMP stock is swapping hands at a fast pace.
About Hempco Food and Fiber
Based in Vancouver, Hempco produces and distributes hemp food products for human and animal consumption. It counts the US, Canada, Europe, and Mexico as its markets. Obviously, the US market will now be substantially bigger for the company in 2019, and this is driving investor excitement as of late.
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Aurora
It also helps that the company is owned by one of cannabis's biggest brands, Aurora Cannabis (TSX:ACB) (NYSE:ACB). In fact, it really helps. Because this means we could be looking at more than just a hemp stock. Are we looking at Aurora mark 2? And if so, there's every chance that Hempco will mimic Aurora's success. It is an advantageous fact the company has over its peers.
With a hemp stock like this, investors have the opportunity of getting in at the earliest stages of the updated US hemp industry, with a company that could easily follow in Aurora's successful cannabis industry footsteps.
You can see the appeal.
Featured Image: Depositphotos © leungchopan
