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I mean think about it like this. Some of the estimate that people are giving on here of SGMD generating $100 million in revenue and that it's stock price is going to be between $0.19 and $0.27, when it has already been in that range from 12/25/2017 through 3/26/2018 on only $4.1 million in revenue. It spent about 3 months there. Also, it was in that range on 10/31/16 to 11/21/16. It was there almost a month with SGMD generating a little over $4 million in revenue. Shoot we are headed back up to that range right now. We are not that far off. How can one think that we would be back in that range after generating over $100 million in revenue? It defies logic.
I am glad you said it because I agree with you totally. You said "What you see occurring is SGMD wrapping up all contracts at one time under Sugarmade umbrella, reorganization announcement of corporate structure and Board, request to uplist with no RS. " I could not agree more. The companys agrees with you. But, when you say that it supports the argument that the stock price eventually will be in DOLLARS and not cents.
Jimmy has said he wants to uplist to the Nasdaq and is positioning the company to do so. Read the articles below where it mentions several cannabis companies in it. Interestingly, when it gets to Sugarmade it says of managements views on the acquisitions: "things(acquisitions) are apparently looking so good overall for the company that management has begun positioning for a potential NASDAQ uplisting, tapping the requisite legal team to expedite the process." So, that's why I think their focus also will be on the acquisitions being closed out first and then an uplisting to Nasdaq. As you know, the stock price needs to be about $4 to do so. So, if they close out the acquisitions it will give them the revenue base to keep the necessary stock price to remain on the Nasdaq. That is why I and evidently SGMD thinks that after the acquisitions the stock price will be well over $4.
https://www.prnewswire.com/news-releases/cannabis-cultivation-operations-booming-as-cannabis-friendly-regulations-fueling-big-revenue-opportunities-803491394.html
https://www.globenewswire.com/news-release/2018/11/16/1653034/0/en/CannabisNewsAudio-Announces-Audio-Press-Release-APR-on-Sugarmade-Inc-Pursuing-Deal-Expected-to-be-Highly-Accretive-for-Shareholders.html
I hope you are right. That would be awesome! I like that name Hempistry better. It just fits more of what the company is doing now better. Also, with 23,000 acres of Hemp crop potential it will attract a lot of investors and keep that stock price way up there. You may be on to something because they mentioned several times in PR's about SGMD's $1,000,000 is invested in stock for a possible future Hempistry IPO. So maybe they just go the IPO route with Hempistry and then just do a straight merger. That makes a lot of sense.
Yeah Acreage Holdings is not going to do anything now. They are just waiting for the US to legalize and then to be absorbed into Canopy Growth. Then Canopy Growth will take over that 7% stake in Dixie Brands also. US legalization must becoming soon because they made this deal early to be ready.
https://www.cannabisnewswire.com/sugarmade-inc-sgmd-invests-in-hempistry-to-reinforce-its-cbd-market-position/
https://www.stockstobuynow.com/sugarmade-inc-sgmd-invests-in-hempistry-to-reinforce-its-cbd-market-position/
Your conclusion defies logic to say that if SGMD generates $100 million in revenue that it's stock price is going to be between $0.19 and $0.27, when it has already been in your range from 12/25/2017 through 3/26/2018 on only $4.1 million in revenue. It spent about 3 months there. Also, it was in your range on 10/31/16 to 11/21/16. It was there almost a month with SGMD generating a little over $4 million in revenue. Can you explain this? What technical indicators are you using to support this? So am I using the wrong math? I have a distinct lack of knowledge and experience so I would like for you to enlighten me please.
So, help me please with my math. I have trouble with addition, subtraction, multiplication, and division. If SGMD is only generating $4.1 million in revenues and there were 660 million shares back then, where should my theoretical PPS be on those dates? Oh my something is wrong. It seems like it is not adding up. My actual PPS is in the range of the numbers you gave me for $100 million in revenue. But where my theoretical PPS should be according to your formula is a lot less for $4.1 million in revenue. Looks like you are using some fuzzy math...lol
Don't try to delete these post so one will see them like all the rest..lol
Explain how if SGMD generates $100 million in revenue you conclude that it's stock price is going to be between $0.19 and $0.27, when it has already more that doubled your estimate on 1/1/2018 and had a high of $0.43 generating only $4.1 million in revenue. That is nearly 1/2 a dollar on $4.1 million in revenue. So you expect that if SGMD is generating over 20 times more revenue that the stock price will be a lot lower? What technical indicators have you used to support your conclusion? How do you explain that? Show me your lack of inexperience and illogic.
Don't try to delete these post like all the rest..lol
Just what I thought you not going to address anything I said. You don't know what you are talking about...lol
It’s beyond silly to think that a company generating significantly more revenue than Aurora did in 2018,that it's stock price is going to be between $0.19 and $0.27. It was close to that at one time at $4 million in revenue. Revenue is what drives stock prices and many times it's also speculation. Cannabix Technology stock price is at $0.84 with $0 revenue just off of speculation alone. Yet you tell me that SGMD's stock price will be a lot lower generating $100 million in revenue. So what technical indicators do you see for that? So what happens to a stock price when revenue goes down? Common sense should tell you that the stock price also goes down. Aurora Cannabis missed target for revenue and what is happening to it's stock price? It's going down. Tilray's revenue are also going down and what is happening to it's stock? It's going down. Cronos revenue has gone down and what happened to it's stock price? It had gone down, down, & down. So it does not matter as much about all of the other technical indicators that you look at. The key technical indicator that matters is revenue. And apparently you are not reading my posts fully. I specifically said we should also be looking at other things like debt, EBITDA, etc. But, I am comparing revenue because that's what mostly drives stock prices higher or lower. Most of the other indicators that we look at are affected by revenue.
So what happens to a stock when revenue goes up dramatically? The stock price goes up dramatically. Many investors do not fully invest off of the technical indicators that you are pointing out. They also invest off of how they feel about a company and it's potential for the future. That's called speculation. When Tilray was up over $300 a share do you actually think they were investing off of technical indicators? Of couse not. Yet it was still at $300 a share. A friend of mines made thousands of dollars off of Tilray during this time period. Do you think he care about technical indicators? Of course not...lol. Tilray now can not live up to that because they are not producing the revenue. So, the stock is going down and investors are not feeling (speculation) as good about the company so they are fleeing the stock.
And of course you are not going to talk about how SGMD feel about these acquisitions because they are talking about uplisting to the Nasdaq after they are done. Which since you are so technical you know the stock price has to be well over 1$ to near $4 to list. So SGMD is expecting the stock to be enough to list on the Nasdaq and maintain it. Did you even read the information?
All I am going to tell you is that you will see when it happens!
Thankfully, most insiders do not sell all of their stock at one time unless the company is in trouble. If they are dumping all of their stock at once then we better be making our way to the exits also because that's an indicator that something is seriously wrong with the company. Most insiders sell their stocks in increments to get paid. They keep a reserve because they are always expecting the stock price to go higher at some point in time with a good company. They can make more money in the long run if they hang on to the stock and the price is continually going up.
Also, there are plenty of companies doing quite well on the OTC and have not uplisted to the Nasdaq yet. One of them is Cresco Labs Inc.. They are on the OTCQX and the stock price is at $10.21. Another is Acreage Holdings Inc their stock price is at $18.01. So, SGMD can do quite well on the OTC even though Jimmy has said he wants to uplist to the Nasdaq and is positioning the company to do so. I think if he does that it will be gold for us as investors. Read the article below where it mentions several cannabis companies in it. Interestingly, when it gets to Sugarmade it says of managements views on the acquisitions: "things(acquisitions) are apparently looking so good overall for the company that management has begun positioning for a potential NASDAQ uplisting, tapping the requisite legal team to expedite the process." So, that's why I think their focus will be on the acquisitions being closed out first and then an uplisting to Nasdaq. As you have said the stock price needs to be about $4 to do so. So, if they close out the acquisitions it will give them the revenue base to keep the necessary stock price to remain on the Nasdaq. That is why I and evidently SGMD thinks that after the acquisitions the stock price will be well over $4.
Also, I have been analyzing this relationship that SGMD has with Hempistry. SGMD classifies itself as a holding company. A holding company is a parent corporation that owns enough voting stock in another company, that it can control that company's policies and oversee its management decisions. Under the SGMD umbrella we have Bizright, BZRTH, Sky Unlimited, Hydro4Less, etc. To me it is looking more and more like SGMD will just have a stake in Hempistry. It is much like Acreage Holding has a 7% stake in Dixie Brands. I say this because they have created Hempistry Holding. Under it's umbrella so far is Hempistry LLc. It looks like Hempistry Holdings will have it's own companies under it's umbrella. So, to me it is looking more and more like a reverse merger is out of the picture for SGMD and Hempistry. Because, I remember a while back we were all discussing this and RememberMyName said that to do reverse merger it had to be with a shell company that was not making any money. He was very right. But, then I found some information from this lawyer who specializes in acquisitions and he said that it could be done with a company making a little money. Well, after these acquisitions are complete SGMD will not be making a little money. So, I dont's see it. But who knows.
https://www.prnewswire.com/news-releases/cannabis-cultivation-operations-booming-as-cannabis-friendly-regulations-fueling-big-revenue-opportunities-803491394.html
If that were the case then why was SGMD's share price on 1/1/2018 at a high of .43 with $4.1 million dollars annual revenue with as many shares as GrowGeneration? That PPS is higher than you say it should be at generating $100 million in revenue withy as many shares as GrowGenration and at the time they were only generating a little over $4 million. On 12/24/18 SGMD closed at .119 with as many shares. So, it should be extremely obvious that $.19 and $.27 is unrealistic for a company's share price generating $100 million in revenue. It's not going to happen.
Also, the company feels the same way. Read the information below where it talks about several companies. When it gets to SGMD it says in regards to managements feelings about the acquisitions:"things are apparently looking so good overall for the the company that management has begun positioning for a potential NASDAQ uplisting, tapping the requisite legal team to expedite the process." The minimum stock price to list on Nasdaq is $4 at listing.However, a company may qualify under a closing price alternative of $3.00 or $2.00 if the company meets varying requirements. Why would they even consider listing on Nasdaq if they felt that the stock price was going to be below $1 after the acquisitions? They know that's not going to happen. They are not saying these things for the investors because they can do quite well on the OTC. They don't have to uplist to do well. Many companies such as Acreage Holmes are doing quite well on the OTC. Acreage Homes stock price is around $18. They are saying these things because that is where they are planning to take the company after the acquisitions. That is why they as well as many others feel the stock price is going to soar well above $1 after the acquisitions are finalized.
https://www.prnewswire.com/news-releases/cannabis-cultivation-operations-booming-as-cannabis-friendly-regulations-fueling-big-revenue-opportunities-803491394.html
https://www.investopedia.com/ask/answers/nasdaq-listing-requirements/
Here are 5 Cannabis companies projected to go north of $100 million in revenue in 2019 and where they were in Fiscal 2018 with their revenues and their stock price now. Have you heard the saying "build it and they will come?" That's what SGMD is doing right now. When they get this revenue generating structure built the big investors are coming. We can expect that SGMD's stock price to eventually be comparable to other companies with a similar revenue base and it will only go higher because the revenues will get higher. Remember we are in a cannabis supply shortages time period and the CEO of Aurora said recently that they have not solved the supply shortage in Canada yet and when the US goes legal then it will take years for them to solve this problem. That's not including when Mexico in the picture. Mexico is supposed to legalize cannabis this summer. So SGMD will have the hydroponics sales structure in place to capitalize off of this revenue explosion that will take place from the current cannabis supply shortage. Remember most of SGMD's sales thus far has been from restaurant supplies. So, in the future, most of their revenue will come from cannabis related supplies where there is plenty of future growth for years. So do not expect the stock price to be below $1 after they get this structure up. It will be in the multiple dollar area. We are about to leave penny land forever.
Aurora Cannabis - 2018 rev/$58M - PPS/$7.68 - Projected 2019 rev/$244.5M
CannTrust Holdings - 2018 rev/$35M - PPS/$5.25 -Projected 2019 rev/$105M
Aphria - 2018 rev/36M - PPS/$7.25 -Projected 2019 rev/$107.4M
KushCo Holdings - 2018 rev/$$52M - PPS/$4.59 - Projected 2019 rev/$117M
iAnthus Capital - 2018 rev/$4.5M - PPS/$3.94 - Projected 2019 rev/$181M
SGMD's stock will fall somewhere in the area of these companies once the 1st acquisitions are done and they recognize full revenue of over $70 million.
https://www.fool.com/investing/2019/02/20/10-pot-stocks-on-pace-for-more-than-100-million-in.aspx
https://www.marketwatch.com/story/where-aurora-sees-cannabis-opportunity-beyond-selling-buds-in-canada-2019-05-15
Yes, and I would be very happy if they go that route. Most investors would be. Also, I like the name Hempistry. It just sounds better...lol. But after these 1st acquisition are done I dont think we will see any stock price below $1 again because the investors will come. I can think of no growing company generating $70M in revenue and the stock price is under $1. I think we are about to leave pennyland forever.
So you think a $100 million revenue generating companies' stock price is going to be at 0.45? There are companies generating 0 dollars revenues at 0.845, for instance Cannabix Technologies. Show me one company that is generating $100 million dollar revenues and their stock price is at 0.45? I can't think of any. SGMD has already been at 0.43 on 1/1/2018 and the annual revenues were at $4.1 million. So when they close out all the acquisitions, they would be generating over 20 times more revenue and their stock price would still be at only 0.45? That's not a good projection. Also, you are forgetting the part that speculation plays in the stock price. A lot of investors are also speculators who invest on the potential of a company and how they feel about a company. That is who SGMD has been losing the last few years, because they had not closed acquisitions and revenues have remained relatively stagnant and so speculative investors lose confidence and flee. That's why SGMD stock price has been steadily going down with relatively the same annual revenue from 2016 to now of over 4 million. If investors invested strictly by the numbers then SGMD would be at .45 now because their revenues increased to $4.4 million from $4.1 million in 2017 when they had a high stock price of 0.43. So, when they close out these acquisitions then guess who is coming back? The speculative investors and the institutional investors because they can now see the potential of the company. So at over 20 times more revenue generation and these other investors coming back, I can see no way that the stock price will be in cents and not dollars. So we have to think DOLLARS and not cents.
After full revenue recognition, I expect Sugarmade's share price to gravitate to between $5 - $7 a share. That's if Bizright has not exaggerated their revenues like you think is possible. Those projections of revenues are nearly 2 years old, so it's also quite possible that revenues may have increased some. So let's just say hypothetically that it is around $70 million of revenue recognition. There is a company that we can compare Sugarmade with that is a realistic comparison. It is a hydroponics company named GrowGeneration. GrowGeneration's 2018 revenue was 29.0 million up $14.6 million or 102% over 2017 revenues of $14.4 million. They have been growing by acquiring other hydroponics companies just like Sugarmade is trying to do. So we can say that they have the blueprint for success that Sugarmade is trying to follow.
The stock price of GrowGeneration is at $3.05 with a 2018 revenue of 29 million. We know we should also be looking at debt, EBITDA, etc. But, we are going to only look at revenue here, that is why I am giving a range of where Sugarmade's stock price should eventually land base on a comparison to a similar company. So, if Sugarmade's revenue after the acquisitions is over double that of GrowGeneration. I would expect the stock price to be between $5- $7. Keep in mind that Sugarmade is loaded with debt and Growgeneration is not. Now factor in the other acquisitions of Hydro4less. Should all three Hydro4less acquisitions close, Sugarmade will increase its annual revenues by approximately $25 million more per year more. So Sugarmade's annual revenue will be at nearly $100 million when you add the $4 million it currently makes. At that point I would expect the stock price to be between $7 - $10.
All of this is not including the Hempistry/NUGS comradery and whatever that is going to develop into. So the future is bright for this company. I think we shall see most of this before the end of 2019.
https://www.prnewswire.com/news-releases/growgeneration-reports-record-2018-revenues-300821795.html
I hope we have an announcement next week saying “Sugarmade is please to announce that we have fully acquired Bizright and BZRTH and the auditing is complete and we are now fully recognizing revenue.”
Moeclay! A live cat bounce is what I would call it...lol
A live cat bounce! I’m calling it....lol
The only thing that makes me think we will be in the green all day is the SGMD acquisition is almost done. Investors should be loading up in preparation for it.
Yeah some profit taking. If goes a little lower I still have some cash and will add to my stash.
It looks like investors have become aware that this acquisition is about done. The stock is rebounding nicely even without an announcement.
Yes, they are going to have to come up with all kinds of ideals to ease the supply crunch. But, just think Aurora ‘s CEO said that when the US cranks up and with Canada already in a supply crunch that it will take years for them to adequately handle the demand. He did not even mention Mexico, which is suppose to legalize cannabis this summer. The whole continent will be in a supply crunch. So there will be a tremendous opportunity for SGMD for years to come.
I am thinking they said 6 months and yes you are right. That surely would help the situation. That’s why whenever they get it from Plantation and start marketing it I think it will be a big money maker.
There will be cannabis supply shortages for years! So, for those who think the cannabis revolution is in high gear, think again. It has not even gotten started yet.
Aurora CEO Terry Booth said in the conference call "that even if the U.S. were to legalize marijuana federally today, it would take years before the country would be able to ramp supply and solve the issues (supply shortages) that Canada has grappled with since recreational pot became legal there in October 2018."
Hydroponics supply companies will play a vital role in tackling this supply issue for years. SGMD is perfectly positioned to take advantage of this problem and get a significant share of this market. So start accumulating shares of SGMD and get ready for the boom that is coming!
https://www.marketwatch.com/story/where-aurora-sees-cannabis-opportunity-beyond-selling-buds-in-canada-2019-05-15
I am thinking that the SGMD selling to raise capital was just about done and those in the know were capitalizing on the low stock prices, including me...lol
Lol..you killing me
Yes it does
It’s evident now that the deal is getting close to finalizing. The stock is rebounding!
The problem is that in your mind everything is illegal...lol.
Believe this! They don’t care if it’s legal. I could loan you money as long as it’s legal and you agree to my terms. Right?
Yes, once this deal closes then it will be a different ball game. We should see significant investor interest in SGMD and it reflected in the stock price
I think they will focus on closing all these acquisitions and having one complete company for SGMD to recognize revenues. Then they will focus on the plans for Hempistry/SGMD. What ever that is.
Exactly, they are all trying to get to the next level where the real money is at.
K&J Funding is just another venture that John Vu has. I don’t know how his operations work specifically. But keep in mind that he is an attorney and he may have other certifications that we don’t know about. But, I suspect it operates much like a mortgage broker. When you go to purchase a property a mortgage broker connects the buyers to the lenders. He may have certain lenders that he connects businesses to . These lenders could could be certain private individuals that want make above market interest on high risk investments. This is a high risk investment. So he gets the funding. Then he makes money buying stock at the lowest possible price and selling later at a higher price and paying them off. The lender is happy. K&J Funding is happy with its cut. SGMD is happy because they have money to now finish the Bizright deal. It may work like that or some variation. So don’t get put off because it’s seems it’s John Vu. He may have a few people that are classified as independent contractors helping him with the paperwork. That’s how a mortgage broker operates. He may have the same setup.
If you understand business then it all makes sense. They have a vested interest in making these ventures succeed. Why would Microsoft partner with Intel? They have a mutual interest in helping each other make money. I mean you think John Vu is doing this for free? There is no one lending money that is going to do it for free. I don’t care if it’s Jimmy’s grandmother lending the money...lol. If she has the cash we will take it. If it’s Jimmy’s grandmother then she will have terms. If we are able to meet those terms and need the money, then it’s a deal. That how it works.
It makes sense because there has been some serious volume the last few days
Yeah, I remember someone posting they visited the facility
If we have been in this for 2 or 3 years then it may seem like a long time of limited progress. But, we just have to hang in there a little while longer because we are just really getting started. This is the time to really be patient because it is going to pay off soon. We have to be determined to have an approach like Warren Buffet and hold on to this stock for years until it pays off. I think it is on the verge of paying off very soon. SGMD is way ahead of the game and we will start to see the results. There are still shortages of cannabis in Canada and it shows no sign of letting up. Many of the major Canadian cannabis companies such as Cronos reported revenue losses because of cannabis shortages. There is such a demand there for product that they can not keep up. That is why SGMD was putting out press releases about the cannabis shortages. We are about to boom. Just think of what is going to happen here in the US when they finally legalize marijuana, the regulation cloud of the FDA is cleared, and the banking industry starts catering to cannabis companies. There is going to be an unprecedented boom with cannabis related companies and it is going to show in the stock price. There will be major shortages here in the US. SGMD is positioned to be supplying the products when the shortages hit here. Also, there are going to be major consolidation in this market. Companies will merge or be acquired. So, as an investor you want to have a line in the water if we are acquired or merge with a big fish. It mean big money for you. So, it would be premature to leave now.
As for Bizright, the audit is winding down. The acquisition is almost complete. All acquisitions are like that. And even if they exaggerated their annual sale, for which I doubt, is 50 or 60 million in revenue not worth hanging around? I think if you get out now, you will regret that move.
https://www.barrons.com/articles/marijuana-supply-running-short-in-canada-51553528232
https://finance.yahoo.com/news/cronos-group-reports-116-million-net-loss-in-q-4-as-revenue-rises-122230099.html
I sure hope it is like this tomorrow. I will be buying!
Volume is very heavy. Has to be SGMD raising capital.
Yeah, it’s bouncing some. Not sure if it will close that low.
I am right behind you...lol. I am down around $8000. But as soon as I can figure where this bottom is I am going to put a lot more money in this thing..lol