Sugarmade Inc (SGMD)

[GetRich902902]

WHY THE STOCK PRICE IS GOING DOWN!

There is no need to panic because the stock price is going down slightly. As we know Sugarmade is in the process of acquiring Hydro4less. The acquiring company's stock price typically falls during an acquisition. Since the acquiring company must pay a premium for the target company. We don’t know all off the details in the contracts right now. But Sugarmade has some heavy hitter investors with bank. So, some of these investors may be shorting the stock for a variety of reasons, such as if they believe the takeover price is too costly, or maybe the premium for the target company is too high. Or they may believe a turbulent integration process such as regulatory issues or problems associated with integrating different workplace cultures or additional debt or unforeseen expenses incurred as a result of the purchase. If the acquisition goes smoothly, and I think it will, it is good for Sugarmade’s stock in the long run because it will come back strong.

Here is the proof that that the declining stock price is tied to the acquisition. Remember the article I posted that said “Sugarmade Shorts Decline 99.09%”. It said it declined as of Jan 24, 2019. When did Sugarmade make the announcement of the acquisition? Jan 23, 2019. Is it a coincidence that the short selling practically stopped the near the day of the announcement? I say it’s is no coincidence.

https://enbulletin.com/2019/01/24/sugarmade-inc-otcmktssgmd-shorts-declined-by-99-09-as-of-jan-24-2019/

https://www.prnewswire.com/news-releases/sugarmade-to-acquire-hydroponic-retailer-hydro4less-flagship-location-adding-to-streak-of-planned-acquisitions-898263995.html

If Sugarmade was the company being acquired, then typically Sugarmade’s stock price would go up. That is why as investors we would not mind if that happened. If there was some private company wanting to do a reverse merger with Sugarmade, and there are rumors out there to that effect, the stock price could shoot through the roof. There have been some penny stock prices with other companies that were well below what Sugarmade’s is right now and zoomed to over $50 a share with a reverse merger. So, what are we to do? We should be taking advantage of these depressed share prices caused by this acquisition and buying as much as we can afford because trust me SOON, we are going to wish we had.