Replies to post #32380 on Sugarmade Inc (SGMD)

[bombaytonic]

And I bet if you look at their filings you will find common note holders who could also be colluding. Also, I’m sure if you look at a group of pumpers here and the tickets they lump you’ll find that they also have common note holders. It appears to be a pretty big coordinated scam in my opinion.

[Catapult Trader]

If a company is diluting and plans to keep diluting, they will NEVER buy back their own shares.

WHY, because they would be wasting their own money?

If you are a CON MAN, are you going to put up a million dollars of your money just to dilute the hell out of it in the next few months? HELL to the NO, you've got living large bills to pay. It makes no sense to do so.

That is why you hardly ever see a penny stock that is supposedly making tons of money buy back their own shares.

HERE IS THE CYCLE:

COMPANY pumps out news that seems spectacular.

PUBLIC gets excited, buys into scam.

PRICE goes up, hopefully way up for company.

COMPANY sells hundreds of thousands of shares on the market so they can live large.

REPEAT (this has been going on for over eight years with SGMD and seems to be the new en vogue thing to do with penny stocks.)

What is easier, scamming investors or actually working and trying to make a company profitable for shareholders?

In order for SGMD to switch course, the company has to do a complete 180 and start doing what legit companies actually do, work for a profit.

In order to do this, they would need to prove to investors they have done this. Such a way of proof would be to buy back their common shares and take them off the market.



Or file bankruptcy and start a new company and then start the cycle all over again or sell the current company to some other company...but more than likely the company is a sham...so who would want to buy it?

[x100xPercent]

The O/S is 845 million as of 3 weeks ago, market cap 2.5 million. This is a very low market cap. Even if O/S increases 10% every month, the market cap at current price will only be 3-4 million in several months if price stays here. Still low for a company making 10-30 million in annual revenues and profitable. This is a good buy. The problem is there isn't enough interest yet to bring the price up and hold gains. Yes the company does not have a good reputation, I myself was very upset with this company after they cancelled their plan they worked on for 2 years. However, they are in a profitable, and simple business now of selling/ delivering product, and the timing of their decision turns out to be excellent with the massive increased demand for cannabis. As they expand, they will get new customers every day and many of those customers will continue to order product for delivery for years to come - coronavirus isn't going away. We will be social distancing for at least a year or two until we have defeated the virus through immunity and treatments. This company is now on a better path and their revenue predictions should be true. Just need the proof in the filings to gain real investors and have some real price gains. For now it's a game/gamble in the short term.