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Sugarmade Inc (OTCMKTS:SGMD) Set To Fly Higher

Sugarmade Inc (OTCMKTS:SGMD) Set To Fly Higher
Written by
Jim Bloom
Published on
January 3, 2018
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Sugarmade Inc (OTCMKTS:SGMD) has made headlines on the OTC markets this past month. The company whose share price has been on the rise since mid-December has begun the year in style with a share price of $.411. This is no mean feat considering that they began December trading at below $.1. Furthermore, their share price stood at below $.05 in November.This, therefore, means that they have experienced an over 700% surge in price over the last two months, news that management has welcome and that has definitely got shareholders in jubilation.The chart below goes further to show the above graphically: SGMD Daily ChartWith such a price surge, we have chosen to take time and review the company and analyze developments that have taken place during this period. As such, we will also be assessing the feasibility of their value proposition over the course of this piece.The History of SGMDBefore going into the intricacies, however, let us first have a brief history of SGMD for the sake of first-time readers.Sugarmade, Inc, a company which was founded in 2009 and headquartered in California, is a product and brand marketing company investing in products and brands with disruptive potential. They have previously invested in brands such as CarryOutSupplies, CannaShroud, and DabBox, all in different industries.Despite their investment in marketing, the payoffs were incommensurate, as was their valuation, a factor which drove them into venturing into a new industry: cannabis.Their entry into the cannabis space seems to have been their saving grace.Since this decision, the company has been enjoying a bull run. Furthermore, with the advancements in the industry, the company has been benefiting from the continued perks of being in this space, some of which have led to their current share price.Recent DevelopmentsSince our last review of the company, a number of positive changes have been made.The company began the month of December by announcing that they had made a breakthrough.Their prototype, BudLife, had gone through the final stages of testing: the live testing phase. This phase would see SGMD conduct storage tests on their novel technology, a technology which they have told the market can store their cannabis for up to six months without affecting the integrity of the plant.Through this, SGMD will be the single largest distributor of BudLife in the California region, one of the largest cannabis consumers in the USA. Though discussed later, the impact of such an announcement on their financials is expected to be off the charts and the growth expected of SGMD amazing.Upon realizing this, SGMD came up with a new strategy that would prove to the market that they were in fact growing.The company has taken up corporate changes which they expect will play an important role in their future growth. The decision to take up these changes has been driven by the expected surge in their business activities courtesy of the continued legalization of cannabis around the USA.Given that they expect to expand at over 500% over 2018, the company is ensuring that they grow the core areas of their business. They expect to achieve this by personnel expansions (including hiring a new CFO), relocation of their headquarters to a larger space and warehouse consolidation.Through these three, SGMD will have made leaps in ensuring the quality of staff is above that of their competitors, they have a much larger place that can house especially their management and that they have enough space to house their output before it is distributed to their clients.Their CEO, Mr. Jimmy Chan further added that:

We will be providing detailed revenue guidance for the full year 2018 over the next few weeks. All of us at Sugarmade are looking forward to growing with the industry over the coming years. Below are the steps we are implementing in order to prepare to meet this grow challenge."

Source:All these go to show how much their demand is expected to rise going into 2018, and the reason for this discussed below.The California EffectThe new year has brought with it some light for the California marijuana space.With the coming of 2018 came the legalization of recreational use of marijuana in the state. Now, adults within California can partake of the drug without the constant fear of arrest, a fact which has come to benefit cannabis players.Companies within this industry are currently smiling their way both to the bank and to a high valuation. SGMD hasn’t been left behind.With SGMD being a major player in the Californian space and having the sole rights to distribute their novel technology to the market, the company will benefit significantly from this change in legislation.As such, the share price surge is expected to continue. We remain bullish about SGMD.ConclusionSGMD is in the right industry at the right time. Their goal is quite simple and elaborate, to be a dominant force in the industry. With the strides they have made, little will stop them from this. We, therefore, are quite bullish about their future share price.We will be updating our subscribers as soon as we know more. For the latest updates on SGMD, sign up below!Disclosure: We have no position in SGMD and have not been compensated for this article.Image courtesy of Don Goofy via Flickr

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