Sugarmade Inc (SGMD)

[GetRich902902]

WHY WE SHOULD BE LONG ON SUGARMADE

We should be going long on Sugarmade because we tend to forget why the stock price of Sugarmade went down in the first place. It had nothing to do with the value of Sugarmade. It had to do entirely with factors other than Sugarmade’s value. But, one main reason is that the Feds raised interest rates in 2018. What does raising interest rates tend to do? Well is slows down the economy. Investors tend to flee the stock market and sit on the sidelines or put their money into something else. The Feds had four interest rate hikes in 2018. Go back and look at the charts and see what effect they had on Sugarmade’s stock price. On March 19th, 2018 Sugarmade’s stock closed at $0.175. On March 20th Sugarmade had a press release about Budlife and showed prototypes. The Feds raised interest rates on March 21st 2018. Despite the rate hikes Sugarmade’s stock shot up to $0.19 on March 22, 2019. Sugarmade‘s stock was on a run and it closed on March 28th 2018 at $0.23. A nice little run. But it was all downhill after that because that’s what rate hikes tend to do. Many stock investors tend to not look at the fundamentals of a company but flee the market when the Feds raise interest rates and stock prices tend to go down. Suagrmade’s stock price from that point on was in a downward spiral for no valid reason. The Feds raise interest rates again on June 13, 2018 and September 6 2018. Despite acquisitions by Suagrmade and raised revenue guidance the stock price headed downward. Remember last year after Canada legalized recreational marijuana on October 17th, 2018? There was euphoria over what could be. But, the marijuana sector was up for only two days and then there was massive sell offs in the entire sector. Every marijuana stock I had went down. I had Canopy Growth, Aurora, Chronos, etc. I had the big boys of cannabis stocks and they all went down. Why did they all go down? There was the looming prospect of another Feds rate hike, that eventually happened on December 19, 2018. Canopy Growth just recovered yesterday from when I bought it. Aurora as of yet has not recovered from when I bought it last year. Chronos has since recovered and is now on to new heights. Sugarmade will recover also.

So what are the prospects for Sugarmade’s stock in 2019? I think it is very good because Sugarmade has become a revenue generating cow and the stock has basically bottomed out. It is tremendously undervalued. If you buy at these depressed prices, you cannot help but make money. Also, the Feds have basically hit pause on rate hikes for 2019. There could possible be one or two more, but it should give Sugarmade’s stock time to recover fully and exponentially rise.

https://www.cnbc.com/2019/01/28/the-cbo-thinks-the-fed-is-going-to-raise-interest-rates-this-year-disagreeing-with-wall-street.html