Sugarmade Inc (SGMD)

[MallenNV]

On these kinds of tickers, when the pump is over they will RS the stock.

If you paid $.02 for the shares and bought 25,000 for $500 and they do a 200/1 RS you end up with 125 shares. At the current price of $.0009 multiplied 200x would put the stock at $.18 and end up at the same pre dilution price.

Here is the problem. If you paid $.02 or more for the shares, 200 times $.02 means your into the shares for $4.00 and everyone knows the price will never recover above $4 and many who paid $.18 pre dilution prices will be into the stock for $36.00 per share but most cost averaged and if so the price they would be into the stock would still be above $4.00.

Many who are not on top of this RS stuff will see the price go from $.0009 to $.18 and think it’s just due to the demand for shares. That is when you short this again because they will soon after the RS, increase the authorized back to 20 billion and history will be repeated.

BUT beware! usually the company will not only RS the stock but get a new cusip number and a new ticker. A new scheme will emerge and the same who bought this ticker will jump on the new ticker. If you do and invest the same way, you will lose all your money, AGAIN!

Buy, sell high before dilution, when high short and buy back lower, rinse and repeat.

Making money can be easy and so simple.