Sunset Island Group Inc (OTCMKTS:SIGO) Explodes Higher on Surprise License News

Sunset Island Group Inc (OTCMKTS:SIGO) Explodes Higher on Surprise License News

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Sunset Island Group Inc (OTCMKTS:SIGO) has been on the move in recent days, ripping higher by as much as 120% on a massive jump in volume. As competition heats up in the cannabis patch, it’s no wonder why the stock took off in this case: The company just announced that it has received its cannabis manufacturing license.

CEO Valerie Baugher stated, “We did not expect it this fast, but we are pleased to announce today that we have received our manufacturing license and will begin to ramp up production of our manufactured products. Multiple revenue streams are always a good thing for businesses like ours and we look forward to producing products that are in high demand.” In other words, this is extremely good news for SIGO shareholders, as the market is bearing out in action.

Sunset Island Group Inc (OTCMKTS:SIGO) trumpets itself as a company whose principal line of business is the cultivation of medical cannabis.

SIGO has leased green house space in Northern California that has been approved for cannabis cultivation. The greenhouse is 12,000 square feet; however, SIGO has begun filing its permits to expand to 22,000 square feet.

Once the State of California has finalized the licensing process and requirements for licensed manufacturing facilities, SIGO will begin consulting and advising clients that operate in the medical marijuana business by providing clients a licensed manufacturing facility to produce products such as oils and edibles.

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Our sense is that, right now, there may be no greater catalyst in the microcap world than an unexpectedly fast approval for a cannabis license such as this. Therefore, it’s no wonder shares took off on the news. At this point, the stock is banging up against key resistance in the $2-2.50 area, and is now trading well above its major moving averages. This is the type of action we look for when confirming a strong catalyst in action. The red flag is really about when you get unequivocally good news, and the stock fails to react well.

Ms. Baugher went on to say, “We will start with extracts, distillates and vape cartridges and we will look to add edibles as well. From there we will look at topicals and other processed cannabis products, the ultimate goal being to build a “brand” that over time will become as valuable as the products themselves.”

Ms. Baugher finished up with, “We now have our cultivation and manufacturing licenses secured and the next step is the distribution license. We would hope that this final step will take place by the end of January, but either way, we will let our shareholders know when received. Our team has made quite a bit of progress over the last few months and I just want to take the time to thank them for coming together and building out a firm foundation upon which we will grow a strong and successful business for the year 2018. Thank you all for your continued support.”

We’ve witnessed better than 250% added to share values of the listing over the past month of action. The situation may be worth watching. SIGO has a history of dramatic rallies. What’s more, the name has benefitted from a jump in recent trading volume to the tune of nearly 290% above its longer-run average levels.

This is particularly important given the tiny float being traded in this stock (just 5.3M shares according to OTCmarkets.com). As experienced traders know all too well, upward momentum and a tiny float is a combustible mix and awfully dangerous for shorts.

Now commanding a market cap of $11.8M, SIGO has virtually no cash on the books, which stands against virtually no total current liabilities ($16K as of its latest financial filing). The company is pre-revenue at this point. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $SIGO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $SIGO, either long or short, and we have not been compensated for this article.

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