I found this description of oversold and it's as good as any. In the case of RMHB a lot of people probably baled in 2015 and made the company seem like it was worth less than it really was. This stock as it sits now should probably worth over .50 and then grow from there. In other words it's at a bargain price right now at .12 or even .20 for that matter.

OVERSOLD
Let's assume that you think that a stock is "worth" $20 per share. A massive wave of selling in the stock takes place due to some poor earnings results. The stock, which was once trading at $45, plummets to just $10. It seems like everyone is exiting the stock at the same time.

You decide that the stock is now "oversold" - this would mean that the selling pressure has taken the stock below the price that you think the stock is worth. If you think that the stock is worth $20, and it is now trading at $10, then you would be of the opinion that the stock is now oversold.

Hope this helps..