Sugarmade Inc (SGMD)

[BCNstocks]

Nhod .0131! Sugarmade included in the "Future Stars in the Cannabis Stocks Space (GRWG, CURLF, SGMD, TCNNF, ACB, CGC, TLRY)". Here is the link to the article:

https://www.wallstreetpr.com/future-stars-in-the-cannabis-stocks-space-grwg-curlf-sgmd-tcnnf-acb-cgc-tlry-42616

In reference to Sugarmade the article states:

Sugarmade Inc (OTCMKTS:SGMD) is another example – like GRWG above – of a company positioned to actually benefit from the inevitable margin pinch that has been punishing the “old guard” cannabis cultivators, like Canopy Growth Corp (NYSE:CGC), Aurora Cannabis Inc (NYSE:ACB), and Tilray Inc (NASDAQ:TLRY). As those companies suffer from droves of other growers popping up everywhere to capitalize on expanding legality and demand, a handful of ancillary players, like Sugarmade, are laughing all the way to the bank.

As described above, the key point here is that all the producers will need to find strategies to increase efficiency to stay in business as margins tighten. One of the most obvious solutions to that pinch is hydroponics. And Sugarmade is emerging as one of the biggest and fastest-growing hydroponics suppliers in North America, helped by an aggressive M&A roll-up strategy that has already started to pay big dividends.

The latest from the company is that it is gearing up to follow GRWG up onto the Nasdaq exchange.

“The approval of GrowGen shares for the move up onto the Nasdaq market is a great sign for Sugarmade as we prepare to make a similar move,” commented Jimmy Chan, CEO of Sugarmade. “It’s a positive signal about the hydroponics market and about our overall strategy. It’s time for institutional investors to get heavily involved in the pick-and-shovel ancillary markets surrounding the hemp and hemp-related boom. GrowGen has done a great job, and we are hot on their tail right now, and plan to surpass them in the race to number one in the hydroponics space.”

According to this morning’s release, GRWG’s good news is really good news for SGMD as well, given that the two companies are basically twins in terms of revenues, market focus, and scale of operations.

SGMD has already booked over $26 million in revenues on a year-to-date basis, and anticipates this number to swell to $32 million on sequential strengthening in gross margins and sales into year end. The company also noted that it is in the process of another major M&A transaction that will significantly further boost overall forward financial projections for 2020.

Based on the huge gains seen in GRWG shares as investors see the value of that uplist, the smart money may be quick to line up similar bets in SGMD.