Geometry Dash APK Hill Climb Racing APK
47.2 F
New York
Wednesday, January 19, 2022

Sugarmade Inc (OTCMKTS:SGMD) Lines Up Potential Squeeze Action

Must read

Medmen Enterprises Inc (OTCMKTS:MMNFF) Pulls Back From Highs as Buzz Cools Off

Among the sectors which have bounced back in 2021, the cannabis sector is one of considerable interest since it had been in...

VirtualArmour International Inc (OTCMKTS:VTLR) Jumps Another 250% This Week

Not every move in the stock market can always be explained and hence, investors are often rightly confused when a stock records...

Ozop Energy Solutions Inc (OZSC) is Riding a Green Wave of Momentum

Investors who are looking for fresh opportunities in rising stocks may have a lot to choose from at this point but it...

Drone Delivery Canada Corp (OTCMKTS:TAKOF) is Soaring after Roadmap Update

The drone industry has grown at a remarkable rate over the past five years or so and hence, it is no surprise...

Shares of Sugarmade Inc (OTCMKTS:SGMD) will likely be in focus again this morning. The stock has been on a roller coaster ride over recent days after making a huge acquisition of a leading ecommerce hydroponics play with $37M in forward revenues set to roll in, and then dropping hints of a possible reverse split. That latter issue hit the stock, but this morning’s Shareholder Letter puts all of this is a very interesting light that could spell a major headache for bears camped out in the stock, especially with all the buzz surrounding the MORE Act to legalize pot at the Federal Level.

We thought this was a particularly compelling passage: “We understand that some investors view reverse splits as necessarily negative events. But that’s because, in most cases, they are undertaken for negative reasons. The stigma that accompanies reverse stock splits is an association with dilution or malinvestment. In this case, we are talking about a completely different dynamic. This is a step taken by a strong company with a big vision. It represents part of a bold initiative to drive improved value for shareholders – to significantly increase the value proposition we offer to our most committed stakeholders – and to make Sugarmade a household name.”

Sugarmade Inc (OTCMKTS:SGMD) bills itself as a company that engages in the supply of hydroponic and cultivation products, and products to quick service restaurants. It supplies hydroponic and indoor/outdoor cultivation products to the agricultural market sectors, including the legal cannabis cultivation, processing, and distribution sectors.

As we said above, the company just did some major M&A, scooping up BZRTH Inc, which is a major player on the ecommerce side of the space. The company seems to be orchestrating a roll-up strategy to basically take over the hydroponics market, which could be a very strong way to position for a world where pot and hemp growing is in a steady boom, but margins are tightening for big producers, who in turn need to spend on capex to increase efficiency.

According to company materials, “Sugarmade, Inc. (OTCQB: SGMD) is a product and branding marketing company investing in operations and technologies with disruptive potential. The Company is becoming a leading supplier to the growing hemp industry and is benefitting from the growth of the hydroponic marketplace. The Company is in the process of acquiring several leading hydroponic and agricultural supply companies that are currently producing in excess of $70 million in annual revenues. The Company also operates, a leader provider to the quick service restaurant industry.”

Find out when $SGMD reaches critical levels. Subscribe to Right Now by entering your Email in the box below.

As noted above, SGMD just put out a Shareholder Letter that could have big implications for action in the stock because it channels a strong voice on growth and uplisting to either the Nasdaq or NYSE, and reframes the company’s recent 8k in quite a positive light.

Given that the company is successfully rolling up the hydroponics space, or so it would appear, and given that there could be a lot of vulnerable shorts in the tape, you may want to have a squeeze radar aimed at this one today.

This is especially true given the likelihood that we will continue to hear about the MORE Act to legalize cannabis: “The MORE Act is a very exciting step because it effectively removes marijuana from the list of federally controlled substances and turns over control to state lawmakers. The upshot is that solid businesses in that industry will have access to the normal range of services that other industries thrive on, including a landscape of banking and investment regulations that allow for commercial success. The implications of this shift cannot be understated.”

At this time, carrying a capital value in the market of $9.2M, SGMD is pulling in trailing 12-month revenues of $4.6M, which is slated to rise dramatically as this acquisition closes at the end of the month. Take note. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $SGMD 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 $SGMD, either long or short, and we have not been compensated for this article.

Latest article

iQSTEL Inc (OTCMKTS:IQST) Stock Makes a Big Move: Jumps 45% In a Week

In the past week, iQSTEL Inc (OTCMKTS: IQST) has emerged as a point of focus among a large number of investors and...

HUMBL Inc (OTCMKTS:HMBL) Stock Sees Big Bounce After Recent Slump

Since the beginning of 2021, HUMBL Inc (OTCMKTS:HMBL) had been one of the major movers from among penny stocks and had come into...

Dividend Stocks to Buy Now

A classic mistake that investors make when looking for dividend stocks is to just go for the biggest dividend yield. It makes...

88 Energy Ltd (OTCMKTS:EEENF) Stock Surges 40% But Can’t Hold Gains

The oil and gas company 88 Energy Ltd (OTCMKTS:EEENF) seems to have come back on to the radars of investors over the...

Net Savings Link Inc (OTCMKTS:NSAV) Stock is Getting Pummeled Again

Nowadays there are plenty of options for investors when it comes to making investments in the cryptocurrency and...
Şehirler arası nakliyat ve Şehirler arası taşımacılık konusunda en uygun fiyatlar ve en kaliteli hizmet.
ofis taşıma firmaları ve ofis taşıma konusunda en uygun fiyatlar ve en kaliteli hizmet. Affordable best sms verification service