Sugarmade Inc (SGMD)

[Meat3137]

I disagree about the "Story" being the main objective. That only applies if you are planing a pimp and dump. Buy low, introduce a big story stick shoots up, then it's dumped and stock tanks.

A company’s underlying business is even more important than it is in exchange-traded stocks because the penny stock world is home to shell companies that are legally incorporated, but lack any business operations. Investors should look for companies with real, sustainable business operations when considering penny stocks.

As with any stock, any given penny stock’s financials are essential for investors. With penny stocks, however, the question is really more about the quality of the financials. If an investor can answer “yes” to the following questions: Do the financials look healthy? Does the company file on time? Who was the auditing firm? Then it’s time to browse the footnotes.