Sugarmade Inc (SGMD)

[GetRich902902]

After full revenue recognition, I expect Sugarmade's share price to gravitate to between $5 - $7 a share. That's if Bizright has not exaggerated their revenues like you think is possible. Those projections of revenues are nearly 2 years old, so it's also quite possible that revenues may have increased some. So let's just say hypothetically that it is around $70 million of revenue recognition. There is a company that we can compare Sugarmade with that is a realistic comparison. It is a hydroponics company named GrowGeneration. GrowGeneration's 2018 revenue was 29.0 million up $14.6 million or 102% over 2017 revenues of $14.4 million. They have been growing by acquiring other hydroponics companies just like Sugarmade is trying to do. So we can say that they have the blueprint for success that Sugarmade is trying to follow.


The stock price of GrowGeneration is at $3.05 with a 2018 revenue of 29 million. We know we should also be looking at debt, EBITDA, etc. But, we are going to only look at revenue here, that is why I am giving a range of where Sugarmade's stock price should eventually land base on a comparison to a similar company. So, if Sugarmade's revenue after the acquisitions is over double that of GrowGeneration. I would expect the stock price to be between $5- $7. Keep in mind that Sugarmade is loaded with debt and Growgeneration is not. Now factor in the other acquisitions of Hydro4less. Should all three Hydro4less acquisitions close, Sugarmade will increase its annual revenues by approximately $25 million more per year more. So Sugarmade's annual revenue will be at nearly $100 million when you add the $4 million it currently makes. At that point I would expect the stock price to be between $7 - $10.

All of this is not including the Hempistry/NUGS comradery and whatever that is going to develop into. So the future is bright for this company. I think we shall see most of this before the end of 2019.

https://www.prnewswire.com/news-releases/growgeneration-reports-record-2018-revenues-300821795.html