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I think you nailed it...nobody whose not on the take can be so constantly messaging positive about a stock that's been tanking
Shouldn't you wait at least until you see some upward movement...this thing has been taking for a few days now.
I get that the word "initially" throws a degree of uncertainty...but merely mentioning the price you want to offer and in general what you think you might sell at...with no reason to do so other than sway investors...would still be considered fraud if you then went out and dumped stock well below market ..it would depend how much you actually dumped at vs the market price at the time...the spread could mean fraud no matter the word "initially" in that statement...it could mean you never had the intention to sell above market
News articles are just another oppty for this CEO to dump cheap stock in the market...the only reason why this stock continues to lose value
He made a public statement about the direction he was going to take with pricing on offerings...which could have influenced investors...that's called fraud if you don't do what you said you would do.
CEO not allowing it to go up with low price dumping...looks like
We can't tell what he's offering new shares at right?
If we can look at his offerings prices...we can see if he's living up to his statement of offering above market prices
Right...but the point was he continues to dilute because he has no money. So where's the money from ops going then?...he should be seeing influx of cash well above his prior run rate if he's doing $500-$600K per month revenue now @40-50% margins
Here's the CEOs PR statement in late June on his plans for funding through shares issues:
To accomplish this, we have organized a Reg-A+ funding round targeting $6 million in capital financing. We have not yet established the precise pricing for this funding round, but we are committed to working with a top-tier investment banking partner. We have initially allowed a pricing scale with a price well above our current market pricing for SGMD shares. This is not due to any plans for a near-term reverse split. Instead, it reflects the rapid growth and strong financial performance we are currently experiencing and anticipate as we move into the second half of the year.
You say he has no money...but he's reporting an $11MM revenue run rate @40-50% GM...so where's the money from operations going for May/June/July thus far?
The fraud part was his PR statement saying he would offer at a price above market value to reflect the forward value of the company... at the time the pps was approx .005 or thereabouts...he obviously did not do that. So he is a fraud CEO...
Still don't know what this analysis is supposed to tell us
Bottom line is historical performance is not useful for a company growing as fast as this one supposedly is.
I agree nothing can substitute your DD
But when the CEO intentionally makes misleading statements like..."stock offerings will be above market value.." and then that doesn't happen...it's called fraud.
It's pump and dump strategy of funding expansion...market cap may increase, but share price declines...at some point there will be some ridiculous reverse split needed to further screw existing shareholders.
Right now I don't think this mgmt team cares about dilution of existing shareholder value...growth matters little if you have constant dilution of PPS
Yep...and still a drop in price to close...makes no sense
Can we get a daily total of shares outstanding here..somewhere? Would be good to see a trend of this number next to market cap and share price...I bet the cap may be increasing....but the share price is going down because of dilution...another way to look at is...take today's market cap...and divide that by shares outstanding a few weeks back and see the difference in share price
Don't know...the only trend I see is in the other direction.
Why would that be with a company that's reported an actual June month result as stellar as they did? This recent downward trend makes no sense to me....unless its related to dilution of shareholder value by the CEO
On June 26 (I believe)...this CEO said they would need $6MM in capital to expand into LA, etc. He set the expectation that the offer price would be substantially higher than market at the time was approx. .005. I suspect he's dumping well below market now and why we still see this stock in the red daily.
Even if all this is true...PPS won't appreciably increase because of massive dilution they have going with their growth...so that's the counterweight to all that growth and profits. Even as market cap should increase...dilution will keep the stock cheap for a long time..who knows when you will see any appreciable increase in PPS...they can just issue more shares in response. Probably why despite the recent July announcement of $11MM annualized sales..you still saw a pps drop today
CEO or Marketing Firm...should resign. The market doesn't believe anything they say
Maybe in the AM (when I've been dumping)...then drop down again in the PM for flippers to come in again (not me)
$11MM Annualized revenues @40-50% margins and still dropping.
Nobody believes this CEO anymore
This stock is strictly for daily flippers playing the daily spread right now...sell high in the AM...buy back lower in the PM...doesn't seem like most are looking seriously at this stock beyond the profit they can make in one trading period
Reducing my holdings by half with marginal profits and going long after that with this company hoping for a bigger payoff down the road. Just too much risk right now...I expected a bigger upward sustained trend from the June performance announcement and didn't materialize...company still lacks credibility at this point until we see Bud Cars results close of July or August materialize
A PO is still technically different than reporting actual sales filled in June for $500K (or $6MM annually)...POs can be cancelled and that would be the excuse (oh, we had the PO, but was cancelled by customer later..which could still be liable if no PO existed and could be proven)....but actual sales made in arrears reported fraudulently..is much different..If this company did not actually sell $500K in June as was reported...this CEO and mgmt are liable for defrauding shareholders of a public company...simple as that. That's why you rarely see CEOs reporting actual results outside their reporting cadences...have to be verified and reported through their finance (CFO) teams. You can make future projections all you want with all disclaimers...but you can't report actual results in arrears with disclaimers in the same way.
I hear you...but this CEO didn't just tell us about his future results...he told us he was already at $6MM annualized sales in June with huge ACTUAL not FORECAST...month over month growth. Seems this type of reporting if not based on real results...is different from projecting results in the future. Reporting actual results to the market is much different than future projections. Otherwise, any CEO could simply report anything they want (in between 10Ks, etc) to pump up prices fraudulently with no liability. Not saying BTW..this is the case here. Not saying that at all. Just a hypothetical
If this is the case, I suspect this mgmt team will open itself up for lawsuits from shareholders given the amount of what would be considered..disinformation/misleading statements ...they have communicated just before filing. The recent June 26 letter to shareholders would be exhibit 1.
That would be $5.1MM MArket Cap = 1.3BN Shares X .0039 closing price
Hahaha...when 2.5% down is a good day..shows that our expectations are reset accordingly...from make a bundle..to just surviving.
What's with the dip in the last two days?...if expectations are set for large #s in July...and investors buy into that...no reason for this stock to be down.
You can load as much as you want...won't matter if Jimmy keeps printing shares ad infinitum
Stock tanking again this AM...losing 7% ...after all the claims the CEO made about prospects and near future performance....there may come a time when fraud comes into play here.
Lost 11% yesterday...and holding steady this AM.
Need another PR announcement to move this clunker up
Charts may show stock manipulation but more important is business results. Chan set expectation that La Hub would open this month So where is the anouncement?
Rather than looking only a PPS...how about looking at market cap. That's a better indicator...I lost track of how many billions of shares are out there now....if they keep diluting the shareholders ..won't matter much how much they grow.
Down 7% today....pathetic performance
Maybe it's because we didn't hear about the LA market rollout this month??
Down by 4% on latest trade today. This stock if legit would have no business falling below .005
Stock market prices months in advance (normally)...and factors in anticipated gains in revenues, profits, etc. The current price just tells me that this company has a credibility problem with their projections...otherwise this stock would be higher. Don't think it's a strategy problem (strategy is sound)..more of an execution credibility issue and continual risk of shareholder dilution. Not sure they can grow fast enough to overcome these market perceptions or dilutions
Because it's real money here..not monopoly money these shares seem to be.
How about an update on the LA rollout? How about an update on the $10MM PPE, ??? When are the dilutions going to stop????