Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
SGMD did run, AWAY!
Budcars is NOT SGMD = No cannabis ties.
Jmarkutah! SGMD is not in cannabis industry.
Shareholder meetings->
Now with covid issues and likely the year or 2 ahead, meetings take place via on line but now companies can just say to call a number to get info. The only way to take action as a shareholder is to have everyone proxy and vote in a new CEO but that would be impossible because 90+% of who owns SGMD shares does not come to ihub and are likely unreachable.
You would have to take legal action to get the list of all shareholders, then send them all a proxy card so they can vote in a new CEO (if they even vote) and then take the steps to take over as CEO with compliance etc.
Plus any attempt to proxy and the debt collectors would just issue 3 billion shares to the CEO so he will own more then the 2 billion float making any vote proxy not enough to take over.
So the outcome is NO no meetings and NO no one will be able to proxy control.
This again is one reason OTC companies make sure they sell less shares to more people. If they sold lots of shares to only a few, they could vote out the CEO and take over the company with all the laundry that goes along with it. But who would even want that.
Selling more people less shares also means no one will invest $20,000 to sue to get back $1000.
As long as there is not enough people to vote out the CEO, they can just say to call the 800 number for the recorded shareholder meeting info.
But this ticker will be long gone before the covid vaccine gets distributed so I would worry more about how to tell the wife you lost the $$$ on this issue before then.
And lets be really honest. Since most here own less than $500 in SGMD and they elect to have the meeting in Hawaii, you would have to spend 4x what you spent on the stock just for the airfare, hotel, food and car rental getting to the meeting.
Shareholder meetings are primarily for voting in the CEO and board, if they can prove they have more votes then the masses they can elect to cancel the meeting as no votes will matter until the masses get control.
:)
Posting revenue is the same as me owning a lemonade stand but saying that Minute Maid makes $5 billion in sales. SO I go out and buy 10 shares of stock and say I OWN part of minute maid and they did $5 billion in sales. So SURE Jimmy can say BC did $$$$XXXX and that they own part of it. It does not mean SGMD made money and they are not saying SGMD makes money from BC.
It's an illusion. to set up the next ticker when SGMD RM.
SGMD is just excited they own 40% of another company that makes money (or so they say) but by no means do they say SGMD gets the money. And saying that is NOT illegal.
If I owed a public company and used $20,000 to buy one share of Amazon, one share of Apple, Tesla etc etc. then say WE are a holding company that owns positions in those companies with the combined revenue well over $50 billions it looks like IM doing great when im just sitting in the basement selling my shares for $.10 and dumping 100s of millions based on that news that is TRUE just has no bearing on the public company I would own.
I do but logic and facts keep coming out.
Jimmy is NOT running SGMD, there is nothing to run! He is just a CEO in name only so the ones who are running the show which means just selling shares need a CEO to file and sign and approve PR news, Jimmy does not even write the PR news releases, he just sits by his phone, sells shares for the cheap and puts his name on documents sent to him.
Everyone is screaming Jimmy Jimmy Jimmy when he is NOT in charge and is not making any decisions. Jimmy is just there so you can all complain to like the HR in a corporation he does not own.
When this is over you will say DAM! MV was right!
Been saying this since $.17 per share.
Convertible note holders? --->
They pay Jimmy $10,000 for 100,000,000 shares.
That makes the per share price only $.0001 per share. That is why the debt conversion holders never lose money and keep the price on a constant downward trend so only they can sell shares.
Everyone is making money except you and others who invested publicly. Even when the stock tanks, the debt holders make HUGE bank
10,000,000,000 shares on average selling for $.01 is $100,000,000 that's $100 million on an average of only a penny!
I said it before, 10,000,000,000 shares divided into 100,000,000 traunches is 100. Jimmy gets 100 x $10,000 is $1,000,000 and the debt buyers get the shares for a fixed $.0001 even when they were trading at $.10.
Most of the money was gotten when the stock was over $.01. Now it’s just the tail end as the bottom feeder’s jump in to cost average. They know if they dilute $.10 on down to $.0001 the same suckers will buy more, fooling themselves they are into the stock for much less when they are just giving more money to the company and debt conversion investors.
In this game as I said would happen months ago, with OTC pumped stocks, the bears make money and the bulls make money but the pigs always get slaughtered
No one makes any money that invested publicly (the pigs) and anyone saying they made a killing on this stock is lying just to prevent the embarrassment of admitting they lost. The stock has been on a death spiral with no significant dips UP to allow anyone to make any money.
The only people posting here who said they made money have to be either Jimmy or the debt conversion note holders. But that is unlikely as they are out having a ball buying cars, boats and Rolexes all with your money.
When the smoke clears there will be NO lawsuit, No criminal action, No enforcement of any kind and no one will be able to find out where to send a summons to even IF they wanted to sue personally which no one here will ever do. It’s just cost too much to pay the legal fees when the ones complaining the most are into SGMD for $500 or less.
Until they are sued or someone files personally and wins, NOTHING will happen to Jimmy or The others who are all out of the USA and not in reach of the DOJ and that is where all your money want.
Back when they sold 100,000,000 per day for $300,000 was GREAT and now even though its $20,000 or $30,000 per day on the wind down that's still a few more million over the next few months,
When the stock is all sold, the marketing stops and no market maker will touch this on the bid.
SGMD reversed from a previous ticker DVOP and SGMD will likely also RM into a new ticker BCAR (HA) and all your SGMD shares will be cancelled as part of the law that allows shares in a previous ticker to be cancelled when a RM takes place. that is why SGMD will not acquire budcars, they need it to remain separate so they can cancel the shares and start fresh with a new ticker.
Keeping it the same so you all are moved and included in the new ticker would just prevent them from selling more of the new tickers shares at a high price like they did in the SGMD beginning so NO you will not take part in the RM. maybe you will get 1 share for 100,000 sgmd shares and that is so you rush to buy more of the new ticker and load up and THEY TOO prepare to explode!!!!
:)
Jimmy is small potatoes--> in fact he owns less shares then the others listed on the records,
Jimmy Chan 19,063,502 shares
Amy Thai 20,644,733 shares
Allen Huang 70,274,568 shares
Chenlong Tan 70,274,568
and
Shashan Huang 88,954,976 shares
The total combined comes to 268,612,347
That means in total combined, the holders who are running the show in name only, own less than 3% (combined)of the authorized, and only about 10% of the float.
Jimmy alone owns only less than 1/10th of 1%, for a CEO that is pretty much NOTHING.
this further proves Jimmy is just a CEO in name only and is just letting others pay off some debt who get the bulk of the shares issued. There is no reason for Jimmy to work or even complete all the news posted because he pretty much has noting to gain by being the CEO. Because the company is broke and Jimmy owns like no shares, there is no reason to stick around.
SGMD issues worthless shares when debt is paid to other 3rd party investors, The debt paid goes to Jimmy and the debt shares are dumped to the public investors, the company is pretty much just a tool to move money to others except YOU the investors.
When the ones listed as CEO etc, own pretty much no shares, is because they know they are worthless. If people who own the float of 2+ billion voted to take over SGMD they could easily. But that is one part of the plan to sell to 1000s very few to prevent a proxy take over. YOU all own the company, Jimmy and his partners own far less then many of you.
the float holders own about 90% of the company, that should tell you all that the company insides know not to hold shares. If they though they would rise they would own 90% while only selling 10% but the opposite is happening and is the tell tale signs of worse things to come.
See how this works.
It clearly stated in the filings that they are likely not to acquire the 30% in budcars. Its says it clear as crystal.
My concerns are not if people read the filings but if they can even read at all.
Welcome to the OTC.
Also to note:
Caveat companies know that shares can sell but NO broker will buy them so noW the stock can only be sold to investors who cant sell them if they want. Only the company is selling shares.
If the company moves back to OTC current they will have to include sales data to be current or they will remain on the yield sign.
My guess is they pay the $4000 to OTC and move to yield but still don't have to post financials but it gives the illusion they are on the move to new investors who are told GET IN NOW before they go to current and the stock explodes. TO THE MOON!
Most new shares sold are to people who don't know Jimmy or even what the company does. Posting all the negativity back and forth here on IHUB is seen my maybe a dozen people at the most while 1000s who don't go to ihub keep the stock volume moving.
So everyone here is excited they will go to OTC current! where was the excitement when they were at OTCQB and the stock was still at the current level?
When they move to Yield they will pump this to new buyers at the current price and 100s of millions will be sold just like at $.002
Remember 10,000,000,000 shares x $.002 is $20,000,000 and lets not forget they will likely add another 90 billion to the authorized.
that brings the sale of shares at even just $.001 TO $100,000,000
there is NO reason to have the stock more up so cost averagers can make back their money. IF YOU CAN SELL the COMPANY CANNOT! the goal is to keep the price low to ONLY the company can sell.
SEE HOW THIS WORKS!
Caveat means nothing! OTCQB means nothing!-->
As long as the commissioned brokers can make $$$ they will sell caveat, currant and otcqb stocks to anyone who wants to buy them.
Do you think there is ONE broker our there who says to a person with a check in their hand NO I won't sell you a caveat stock.
Suckers buy stocks and brokers sell to suckers.
Welcome to the OTC.
AND the OTCs who set up the process make sure they skate the law and rarely if ever does ONE OTC CEO ever face punishment.
Its Game->
just curious. would FINRA/SEC allow CEO to do a RS? Or other type of action? this is his money maker. i don't see him laying back on this. he has to have plan, right? just frustrated at this point.
-
An OTC can RS any amount like 10,000 to one meaning if you own 10,000 you then own one share.
But they can only do a forward split up to 20%. if you own 10,000 then you would have 12,000. they do this to prevent a corporate dilution using a forward split. But they can increase the authorized to what ever 100 billion or more. NO LIMIT!
Rarely does a OTC issue forward splits, no reason to because they would just be giving shareholders more shares that would mean they can sell for less and make money and the point of a pump and dump is NOT let shareholders make any money.
The ONLY ones who sell shares on a pump is the company, No one else, they will NOT allow anyone to make money. the moment the stock rises up, shareholders can make money and that is NOT part of the plan. so the stock will only drop because a pump company can sell billions of shares as the price drops and make millions when anyone else selling loses. This prevents anyone from competing with the share dump as it tanks towards $.0001
Welcome to the OTC!
The CEO of an OTC company that is found guilty of any issue, rarely faces the DOJ. The SEC will likely fine the company and not pass charges to the DOJ (FBI).
One part of the punishment is that the CEO cannot be a CEO or even a board member of another OTC for 5 years.
BUT that's no big deal because Jimmy is just the CEO in name only as other people who are not attached to SGMD that make 95% of the money raised and are not part of the SEC enforcement.
Even though the CEO is banned, the ones who really run the show just move onto another CEO on another pump stock. They find a new person to be CEO and use them like they used Jimmy. Jimmy will be lucky if he makes $1,000,000 after all this and that is a stretch.
Jimmy may not be a CEO for 5 years but the pumps will continue over and over using new CEOs to fill the void.
SEE!
I dont think it was at $.40 2 months ago, maybe in 2013
Why is it people who paid $.10 per share applaud when the stock rises 100% from $.001 to $.002? they are still down $.098 per share.
CRAZY!
Stock was $.0015 at OTCQB now its at $.0015 at Caveat...If SGMD goes to OTC current it will not help the stock. Stock tiers do not move stocks. Hype and pumps move stocks. That is why they don't need to move UP to sell the same amount of shares.
This is proven by what I just posted above. Some say not true yet here we are.
The only ones who make $$$ off this stock are those who shorted it when it was at $.10 on down to $.05 but they know it would tank and were guaranteed many will buy on the hype to cover the shorts.
Those who shorted who knew it would tank are associates of insiders who help make it all happen.
People say I am a moron or stupid? well then explain what I just posted as incorrect. I have proof and knowledge on my side and I am 100% correct.
NOT to mention people pumping that when the traded shares start to slow down the stock will rise? well it slowed down and the stock still tanked.
When only a few make millions, they do so by 1000s investing and losing $500-$5000. In any stock, everyone does not win. For some to win many have to lose. Welcome to the OTC!
Have a happy day. ")
Caveat or NASDAQ, if people keep buying the stock regardless of where they are listed just saves the company money with no need for compliance.
More money less cost is BETTER for shareholders.
BUY SGMD LONG then say SO LONG to your money.
So let me get this straight!
People who bought at $.18, $.10 or even $.02 see it rise from $.0014 to $.0018 showing a % gain and get excited when they are still down 90+%
Crazy!
OTCQB or Caveat. As long as people continue to buy shares at the same price regardless of what level on the OTC they are at why even go to OTC current?
Besides they save $6000 not paying the OTC fees to be current. So that's more money towards shareholder value.
LOL!
I know everyone whos making it happen and the money raised is LONG gone off shore, When it shuts down you wont even be able to find an address to send a complaint to.
That is your opinion. Jimmy is off the hook.
Suissac, the plan WAS to dilute make $$$ and shut down. It wont matter who shuts them down but they will do it themselves before any SEC actions taken, That was the plan all along.
They make MILLIONS and you will not get any funds back or satisfaction because making millions and shutting it down WAS THE PLAN!!!1
SGMD was .00X BEFORE caveat, think about it.
SGMD - Heads UP. You need to change this ASAP
On your OTC company description you state that OUR meaning YOUR Budcars. when it needs to say Budcars primary hub not OUR primary hub.
The wording now shows this below:
Our primary hub in Sacramento has experienced extremely rapid growth in terms of total...
It needs to say:
Budcars primary hub in Sacramento has experienced extremely rapid growth in terms of total...
50m average in 30 day period is 1.5 Billion, at $.002 comes to monthly revenue of $3,000,000.00 just selling shares, that is more then they would ever make selling MJ. You get it yet?
equtz, I could not have said it any better, Problem is, no one listens to the logic only fancy intent PR.
Amazing! A $400 PR = $325,000 CASH!
Change the name to: SUGARCOATED
The only force that generates interest in any stock is news. If SGMD did not release any news, no one would know they exist. NO ONE here discovered SGMD on their own, someone told you all about it, a HOT tip, and some pumper saying to the moon.
Not ONE person investing in any OTC pumped stocks manage to find that ticker by searching themselves, they are lead to the ticker in some way.
Market makers will only take in shares on the bid, but only if there are people buying the shares on the asked. The only way to get people to buy on the asked is to post news. No news, no shares selling.
News drives the selling of shares. The fact that the dilution is part of the plan to keep the shares on a downward price is to limit anyone other than the company from selling shares.
Here is the easiest way to say this:
- OTC Company sets up a new “hot topic” company
- Quick website added to promote the intent
- News and hot tips emerge and leaked to OTC investors
- Shares sold at a high price at first
- Company says they need money to expand and dilute is part of the success
- Stock price tanks but people keep buying to cost average
- New people are lead to the ticker that it will go back up
- High price share buyers keep buying more to cost average down
- The lower the share price the more people buy
- News keeps interest in the stock allowing market makers to buy and sell
- When people are told, once the dilution stops the stock will explode
- Investors keep buying the stock on the asked, believing that will help
- As the dilution unfolds the 100s of millions traded per day decline rapidly
- The market makers also slow down on buying at the bid
- Company news ends up being proven not so accurate
- All investors who own billions of shares sit and wait
- Investors believe they can tell the CEO what to do to raise the share price
- News continues to slow down and market makers kill the bid and asked
- More people keep buying on the declining price
- When the diluted shares are all sold, the company stops posting news
- No news, no new interest
- No interest, no need for the market makers to have a strong bid
- When the news stops, the market makers stop
- Once that happens its OVER
If there are 3 billion shares are in the float and they did rise to $.02 cent as some speculate. You think a few market makers are going to spend $60,000,000 buying up those shares on the bid?
One-person selling 1000 shares at $.02 and the bid will drop back to $.001. Why everyone believes that if the shares ever did rise back to even $.01 they all will be able to cash in, that is not so.
It would be like someone who sees that eggs are becoming scarce so you go to the store and by them all up to sell higher but they rot before you can get rid of inventory.
You see the point? Pumped OTC stocks are like rotten eggs. At one time you can make a delicious breakfast then soon after they go bad.
You only short a pumped OTC stock when it's above $.01 knowing it's a pump and dump so you can be assured the stock will drop after the pump is over or after the dilution phase of the pump.
Shorting it now will make no one any money unless you buy 10's of millions of shares with the hopes to sell when they fall even further.
The problem is that the short positions will likely be manipulated up to create a short squeeze forcing shorts to pay more for the shares that they sold them for while at the same time preventing anyone from selling except at a loss.
This just adds more money to the company as they sell shares that are needed to close out the short position. If the shorts decide to hold the positions open to wait for the shares to fall, they will lose money paying the fees on the borrowed shares.
Meaning they will lose either way and make the company more money as the open short is a guaranteed sale for shares no matter the price.
And if the shares end up all selling, the only way to close the short position would be to put a higher bid price exceeding the short price.
Tom, It's the horse race mentality. Bet on the long shot and once you do and lose you figure you have to bet again to win back the losses. A few losses turns into a decade of disapointment.
If you don't bet you definitely will not win so you figure keep betting till you win and keep betting more so that eventually when you win big you will make up all the losses.
Pumped OTC stocks know this and that is why they all start higher priced, add more to the authorized, create massive debt, sell the debt, add billions to the float that always makes people cost average.
Then of course the pumpers say to check out a new ticker and make back all your losses.
This is done so that no one makes money on the stock other than the company. They have to keep the stock on the downward spiral or they would have competition selling the shares with investors. This takes away form the company dumping billions who want to keep all the money.
Remember, the company always makes money-selling shares even when the price drops from $.10 to $.0001; they always make money while investors always lose money.
While only a few at the company make millions, they do so when 1000's of small investors buy $500 $1000 more or less. A few win and many lose, just like the horse races only the OTC Company are the ones who collect the bets and pay out very little.
This is the OTC syndrome. Plus it’s the race and excitement and not the end product, which should be a well-run company with a higher share price, that is not really that common on the OTC.
Let's face it. If you told all the horse race betters that there is a baby race down the block at the park with BETTER odds then the horses, no one would show up. It's just not as exciting.
That is why all pumped OTC's are exciting! Marijuana, bitcoin, hemp, CBD, covid cures or covid PPEs.
Tell an OTC investor a shoe store did $10,000,000 in sales and netted $7,000,000 that has no debt, they won't touch the stock. It’s just to boring.
They want to buy high, cost average, convince themselves they are only into a $.0001 stock at $.00015 per share so its not that bad. But they spent $1000s to cost average but $1000 loss is $1000 loss.
The goal is to eventually find the ONE winner that turns 5,000,000 shares that they paid $.0001 for ($500) and if that one OTC does hit it to $1 they make $5,000,000 and cover the decades of losses totaling much less.
The risk is, if they don't buy the shares and it hits they will miss that huge pay day so they never stop buying pumped OTC stocks for fear it may be the one that got away.
They play the odds that one will hit. So far in decades I have never seen anyone do that with a pumped OTC Hot topic syndrome stock.
Then the defense mechanism kicks in. The happy investors eventually start calling the CEO a crook or names then start posting what the CEO needs to do and how to do it. They even tell the CEO to pay everyone back or they will be arrested. YEAH SURE.
I think that pumped OTC investors just like to be punished and beat down and they enjoy it for some reason because they do it over and over on more and more pumped stocks.
The CEO is not at fault. What people are bitching about was the plan all along and part of the plan is to eventually see investors post that they will file with the SEC or congress and have them arrested.
Like that's going to make the CEO change the plans. The plan is to take investors money, dilute, go dark, close up and go silent and eventually reverse merge and the same investors will follow them to the next big pump.
When one pump is over?
They all say the same thing.
Well make it all back on the next BIG THING!
I would not be surprised if SGMD reversed into budcars and is setting the seeds for a new ticker at $1.00 per share and since everyone is believing budcars is key, they will rush right to the new ticker and the cycle starts all over again.
Monroemi, to make money shorting a stock, you have to be able to sell the stock and then buy it back cheaper.
The market makers are only getting the bid shares from the company not the public. If the MM's did buy public bid shares they would only make the spread. The company pays the MM's side cash if they acquire the shares directly from the company.
If you short SGMD you will make very little if that. And if you attempt to short then wait for the price to drop, you may also get caught in a short squeeze.
The MMs may counter any shorts with a slight rise in price and your margin accounts will be whipped out or you will have to keep paying the loan fee to keep the position open but that won't work as you have to close the position or the fees will exceed the profits on the short.
As long as people are willing to buy at $.002 the endless shares will be available and 10,000,000,000 x $.002 is $20,000,000 more than they already raised. and the price will not drop to close a short position
The buyers on the asked are the suckers and so will those who short SGMD
Here are some FACTS! Based on the UC Davis production cost studies. Out door cultivation under perfect conditions will yield 500 pounds per year per acre. If SMGD has 5 acres that comes to 2500 pounds (1,120,000 grams) far less than 3,500,000.
But based on UC Davis industry facts about MJ production, out door plants are routinely only 2.5% THC while indoor cultivation will yield more buds per plant and almost always over 15% THC.
The costs of outdoors cultivation is difficult to compete with indoor cultivation.
Higher end THC content buds sell for around $500 per pound per acre, that means that if each acre yields 500 pounds per year x $500 per pound, each acre will generate $250,000 per acre per year.
But that is the higher indoor cultivated THC product, an out doors cultivated farm that is only 2.5% THC more or less will only achieve a per pound price of $200 per pound maybe even less as people are finding that level of THC to be inadequate.
In the same 5 acres yielding 500 pounds each acre x $200 per pound, as per UC Davis, $500,000 is pretty much the maximum that will be achieved with each 5 acres of cultivation on a low level THC product.
That does not include costs to farm, process, package, market, labor and what is about 10-20% in losses due to pests, theft, weather damage and other factors.
Indoor plants grow year round 24/7 because of UV lights. At night, outdoor plants go dormant and reduce the growth process by up to 70%. Also UV light is directional while the sun moves further reducing the growth process.
The outcome is, if they did plant marijuana on only 5 acres and added in the overhead, security, marketing and processing costs that are estimated to be 30% of the gross, $500,000 x 70% would likely only net them $350,000 then reduce that by 30% from the lack of the growth process and you end up with about $250,000 net annually based on 5 acres.
Out door cultivation is far less THC that is hard to market when people are now buying upwards of 25 to 40% THC products.
This is industry data. If SGMD did achieve the goal on the 5 acres, $250,000 after costs and overhead and limited sales of a low THC product is still $250,000. not to bad. BUT!
The problem is, Selling shares cost them nothing and no labor or overhead. Selling $20,000,000 in shares vs. trying to make the same $20,000,000 growing MJ at $250,000 net per year comes to 80 years.
Given the choice would anyone really waste their time over 80 years to make $20,000,000 when they can make that much selling shares in just a few months?
GNGR: Anyone who has purchased shares on the open market since GNGR went public in 2008, should do the following:
Call your broker and get a hard copy written letter or email confirmation stating that the shares you purchased are in fact registered with the DTC.
I would do this ASAP.
We have reason to believe and with a high level of accuracy that far more shares have been sold over the years than the actual <108,000,000 float that is registered with the DTC.
Anyone with shares purchased as far back as 2008 should look into this to make sure the shares you bought and paid for are in fact registered.
Any positive actions by Gunther Grant will only benefit those who hold registered shares. Any shares that are not registered will not take part in any positive actions.
This message will be posted on the GNGR website under security details.
We are moving forward and will keep people informed on our website as we expand and while the progress continues.
Team10
The PR won't benefit SGMD financially.
BesaoT35, SGMD does not own enough of budcars-> to add those figures to their financials. SO NO there is no benefit to SGMD owning part of budcars.
It is the same as you buying one share of AMAZON stock and telling people YOUR public OTC company owns part of Amazon and that Amazon did $50,000,000,000 in sales to sell your shares.
It would be TRUE to tell people that but your company would get NO benefit financially from Amazon. Same with SGMD, they can promote budcars but not get any financial benefit or benefit to SGMD shareholders.
Hope that helps.
To make money (The company) on a pumped OTC, they have to have Losses not profits.
You cannot covert debt to free trading shares unless you post constant losses. That is why they lose more and more each quarter and keep the price dropping so only the company can sell shares at a profit but you all cannot.
There is no law saying they cannot add more shares and dilute and sell for less. Sure you lose money and as I have said many times, you Losing money is not illegal.
Dilution makes you lose money and adding shares to dilute is legal so there you have it.
All legal.
If the shares are $1.00 or $.0001 the company always makes money. And for a few at the company who sell the shares to make lots of money, 1000's of you have to lose money.
Keeping the stock slowly in decline makes it so no one will sell except for the company. When the shares are sold out, it’s over.
They know they can never sell 8 billion for $1 and raise $8,000,000,000 but they do know 1000s will spend $500 to $5000 no problem on shares that are $.01 or less, so to make at least $30 million they just have to sell more shares for less.
If they were a low-float, solid entity with 25,000,000 in the float at $.50 per share is $12,000,000. It’s the same being a diluted entity with 8,000,000,000 float at $.0015 is still $12,000,000
Which price do you think is easier to sell at? OTC investors want more for less, OTC pumped companies know this and are happy to accommodate.
The reason they chose dilution is, they know most will not buy a $.50 stock so it is easier to sell more people more shares for less cost.
Pumping a stock at $.002 will go to $.06 is a 30x gain, SURE it’s possible to have that happen but try and convince OTC investors the same percentage gain at $.50 will rise the same 30x to $15 per share. We know that won’t happen on the OTC
That is why almost all pumped OTC’s must dilute or they would have no shares to sell and they would only make some money on the initial pump then it would be over. The game is to keep going as long as people are buying the shares regardless of the price. To keep it going they add more shares.
The end product is to shut it down when the shares are gone, reverse merge, cancel all the old ticker shares, form a new ticker and do it all over again.
For every $.001 gain in share price over the current price, totals $100,000 on each 100,000,000 shares sold. When divided into a float with billions, that figure jumps to $1,000,000 per billion.
That is how this all works.
The worst part is:
You all know this already and have been through this dozens of times, What made anyone think this is any different?
It is the syndrome, I better get in on THIS ONE and make back all my past losses.
Here is how it works:
1) NEW HOT TIP! Better get in before it explodes! Company sells $20,000,000 at $.18-$.05
(If the TIP is so HOT whey are the tipsters telling you about it? why are THEY not just grabbing all the shares?)
2) Stock tanks and everyone BUYS MORE to cost average thinking they will still make $$$ when the fact is they are just giving more money to the company
Company sells another $20,000,000 at sub penny.
3) The stock drops knocking 98%+ of the share value and people are told QUICK take out the asked! Slap the asked! As if that does any good as the asked once taken out is replaced with more sucker play asked shares.
4) The company goes silent as they dilute billion at sub penny and STILL raise $20,000,000 or more.
5) People have no place to go. Complaints will not be acted on. No enforcement actions taking place against the company or CEO. The only outlet other then seeing your SHRINK is here on IHUB, the easiest and cheapest way to have an intervention about a suckers play.
6) A NEW HOT TIP stock that also will explode is pumped to get you all to move to a NEW ticker and you will make the CONTINUED losses back on that NET HOT PLAY.
7) Once that is done go back to # 1) and the cycle starts all over.
This is NOT the CEOs fault, it is not the SEC’s fault, it is not illegal in any way.
You losing money is not a crime and because they issued the safety intent disclosures, SGMD did nothing to warrant an investigation or enforcement action.
And even if SGMD was found guilty of what ever it is you think they did, the money is GONE, the CEO is gone and there is nothing left to recover.
OTC pumps and dumps,
Where logic and reality is replaced with denial and ignorance.
Jimmy's days are almost over. Once the 8 bililon are sold for $20,000,000 there is no need to stay in business.
IT IS PART OF THE PLAN!
And no complaints will be reviewed or acted on.
SGMD is 100% operating within the legal statues.
The ONLY issue from all these OTCs is BUYER BEWARE.