Happy Monday! Ok By the time O/S 450,000,000 shares are issued out the recognized revenue from Bizright will be so much higher . I don't see the 450,000,000 shares diluting the stock . Back in April Sgmd Recognized all revenue from Bizright. The first round of 250,000,000 Shares to be issued to Bizright and Next round of 200,000 share are to be issued around April 2019. So here's the Math $30 Million in Revenue and sgmd has a growth rate fast then the industry which will is 25 % in 2019. The Infrastructure for Cultivators is said to grow by 35 % to 40 % Per year for the next few years.
35% per year gives sgmd revenue of $40 million by April 2019 . Base off of these numbers alone and a Total of 700,000,000 shares or 750,000,000 since shares may be issued out bc Jimmy may need cash to pay out Bizright .( 50k Shares at 12 Cents equals $6 million to pay out Biz Right).
Now Sgmd will have a Market Cap of $90 Million and Revenue of $40 Million. That's 2 1/2 times sales.If you were to buy a good Restaurant in New york with zero growth is equal to 3 times sales. Sgmd is growing at 35 % A year for the next few years. $40 Mil Compound yearly for the next 3 years equals 100 million Dollar and will have a Markets cap of $90 million. This is Less then 1 times sales in the next 3 years. Lets give Sgmd the low end of the industry of 15 times sales . This will equal a price target of 2.10 from the price of $.13 today. The odds are that Sgmd will mostly likely have Revenue much higher then 30 million in revenue this year and more like $35 million bc the first estimated of revenue was $30 million, this is believed to be a low ball number. We have yet to add revenue from the other parts of the business especially budlife. If a drug was being develop and had promise it would trade 50x ,100x or higher sales. There is no price premium for Budlife. Budlife is the reason I owen Sgmd since July of 2017 at 4 cents. Budlife is also the reason why this deal happened but without it the stock is still so undervalued ...... Right now only 250,000,000 shares will be issued out to Bizright on supposedly $30 Million. Market cap of $ 60 Million . We are at 2x sales. This company has value much higher.
4x sales equal 26 cents and 8x sales equals 52 cents. If someone was to buy sgmd they would have to pay at least the industry of about 15x to 20 x sales...... So financial don't matter here especially when Sgmd are making great efforts to finishing. Reward high risk extremely low.
Remember my name and take your time buy it higher.
P.S In a few days I will talk about the charts and what I see as positive signs.
