OTC:SGMD - Sugarmade Inc. Full Analysis (updated F
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Posted On: 02/04/2017 4:08:55 PM
OTC:SGMD - Sugarmade Inc. Full Analysis (updated Feb. 4th)
What they do:
Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade's brands include: 1) CarryOutSupplies.com, which supplies generic and customer printed items to the quick service restaurant industry, 2) CannaShroud and DabBox, which are unique cannabis packaging products and 3) Sugarmade Paper a tree free office and copy paper made from sugarcane waste. The Company will soon be launching Sriracha Stix, a revolutionary culinary seasoning product under official license from Irwindale, California-based Huy Fong Foods, Inc., the maker of Sriracha Hot Chili Sauce. The Company has also recently acquired international paper contracts from Bao Coc International Paper and Plastics Limited, located in Vietnam. The Company is currently in development of several other innovative product lines, including the recently announced ancillary cannabis products which are planned for mid-2017 introduction.
Location & Business Info:
167 N. Sunset Ave. City Of Industry, CA 91744
CEO - Mr. Jimmy Chan
21 full/part time employees
In business for 10+ years
Industry:
Consumer Goods, Paper & Paper Products
Brands/Products:
Sugarmade Tree Free Paper
Carryout Supplies - FreeHand Thumb Trays, Coffee cups/sleeves, yogurt cups, etc.
Seasoning Stixs
SrirachaStix - coming soon
Canna Shroud
DabBox
SmelPro - coming soon
Websites:
Sugarmade.com
CarryOutSupplies.com
SeasoningStixs.com
SrirachaStix.com (you can sign up NOW to be a taste tester)
CannaShroud.com
DabBox.com
Videos:
Sugarmade, Inc. (OTC:SGMD) - Sugarcane and Bamboo Paper https://www.youtube.com/watch?v=COgGNHSCJfg
Intelligent Active Packaging by Sugarmade Inc. OTCQB: SGMD https://www.youtube.com/watch?v=-e4BNTAzTFE
Recent News:
2-3-17 Current Filing Report 8K https://www.otcmarkets.com/edgar/GetFilingHtm...D=11823874
2-2-17 Current Filing Report 8K https://www.otcmarkets.com/edgar/GetFilingHtm...D=11818534
2-1-17 Sugarmade to Utilize Patents to Create Cannabis Active Packaging Market www.otcmarkets.com/stock/SGMD/news/Sugarmade-to-Utilize-Patents-to-Create-Cannabis-Active-Packaging-Market?id=150105&b=y
2-1-17 Marijuana Industry's Continued Growth Creating Innovative Cannabis-based Products and Services http://www.prnewswire.com/news-releases/marij...02273.html
1-24-17 Sugarmade Acquires Manufacturing Rights for Smell Pro Cannabis Transport Product - Receives First Set of Orders www.otcmarkets.com/stock/SGMD/news/Sugarmade-Acquires-Manufacturing-Rights-for-Smell-Pro-Cannabis-Transport-Product---Receives-First-Set-of-Orders?id=149290&b=y
Red Flag #1:
(Taken directly from their 23-Nov-2016 Quarterly Report) "Our capital requirements going forward will consist of financing our operations until we are able to reach a level of revenues and gross margins adequate to equal or exceed our ongoing operating expenses. Other than the notes payable discussed above, borrowings from our bank and the production credit facility with our suppliers, we do not have any credit agreement or source of liquidity immediately available to us. Given estimates of our Company's future operating results and our credit arrangements with our suppliers, we are currently forecasting that we will need to secure additional financing to obtain adequate financial resources to reach profitability. As of the date of this report, we estimate that the cash necessary to implement our current business plan for the next twelve months is approximately $2,000,000. We will be required in the near future to issue debt or sell our Company's equity securities in order to raise additional cash, although there are no firm arrangements in place for any such financing at this time. We cannot provide any assurances as to whether we will be able to secure the necessary financing, or the terms of any such financing transaction if one were to occur."
Red Flag #2:
2014 -$755,610 Earnings
2015 -$10,230,000 Earnings
2016 -$2,460,000 Earnings
Stock Analysis
SGMD - Sugarmade Inc. trades on the OTCQB market. The OTCQB is the middle tier of the three marketplaces for trading over-the-counter stocks. The stock has not been heavily traded before 11-02-2016. Since then the stock rose to $0.40 and came all the way back down to $.05 as of 1-23-2017. Volume has increased significantly within the past 2 weeks and looks to continue through February.
A/S. 300M
OS. 203M
Restricted 162M
Float. 41M
My opinion and comments: While the company has a big debt issue, SGMD continues to move forward and innovate in the MJ sector. Recent patent news says they are NOT sitting around on their previous Product line and its revenues but rather looking forward as ALL companies should do. I will be following the company closely as they reveal their provisional patent details relating to their unique cannabis packaging IP.
TL;DR Sugarmade has acquired rights to important patents specific to storage, transport, and pathogen reduction in cannabis. Acquired intellectual property to allow for prolonged storage, reduced THC loss and active treatment of dangerous pathogens. Stock trades on the OTC and is currently .14 per share.
What they do:
Sugarmade, Inc. is a product and brand marketing company investing in products and brands with disruptive potential. Sugarmade's brands include: 1) CarryOutSupplies.com, which supplies generic and customer printed items to the quick service restaurant industry, 2) CannaShroud and DabBox, which are unique cannabis packaging products and 3) Sugarmade Paper a tree free office and copy paper made from sugarcane waste. The Company will soon be launching Sriracha Stix, a revolutionary culinary seasoning product under official license from Irwindale, California-based Huy Fong Foods, Inc., the maker of Sriracha Hot Chili Sauce. The Company has also recently acquired international paper contracts from Bao Coc International Paper and Plastics Limited, located in Vietnam. The Company is currently in development of several other innovative product lines, including the recently announced ancillary cannabis products which are planned for mid-2017 introduction.
Location & Business Info:
167 N. Sunset Ave. City Of Industry, CA 91744
CEO - Mr. Jimmy Chan
21 full/part time employees
In business for 10+ years
Industry:
Consumer Goods, Paper & Paper Products
Brands/Products:
Sugarmade Tree Free Paper
Carryout Supplies - FreeHand Thumb Trays, Coffee cups/sleeves, yogurt cups, etc.
Seasoning Stixs
SrirachaStix - coming soon
Canna Shroud
DabBox
SmelPro - coming soon
Websites:
Sugarmade.com
CarryOutSupplies.com
SeasoningStixs.com
SrirachaStix.com (you can sign up NOW to be a taste tester)
CannaShroud.com
DabBox.com
Videos:
Sugarmade, Inc. (OTC:SGMD) - Sugarcane and Bamboo Paper https://www.youtube.com/watch?v=COgGNHSCJfg
Intelligent Active Packaging by Sugarmade Inc. OTCQB: SGMD https://www.youtube.com/watch?v=-e4BNTAzTFE
Recent News:
2-3-17 Current Filing Report 8K https://www.otcmarkets.com/edgar/GetFilingHtm...D=11823874
2-2-17 Current Filing Report 8K https://www.otcmarkets.com/edgar/GetFilingHtm...D=11818534
2-1-17 Sugarmade to Utilize Patents to Create Cannabis Active Packaging Market www.otcmarkets.com/stock/SGMD/news/Sugarmade-to-Utilize-Patents-to-Create-Cannabis-Active-Packaging-Market?id=150105&b=y
2-1-17 Marijuana Industry's Continued Growth Creating Innovative Cannabis-based Products and Services http://www.prnewswire.com/news-releases/marij...02273.html
1-24-17 Sugarmade Acquires Manufacturing Rights for Smell Pro Cannabis Transport Product - Receives First Set of Orders www.otcmarkets.com/stock/SGMD/news/Sugarmade-Acquires-Manufacturing-Rights-for-Smell-Pro-Cannabis-Transport-Product---Receives-First-Set-of-Orders?id=149290&b=y
Red Flag #1:
(Taken directly from their 23-Nov-2016 Quarterly Report) "Our capital requirements going forward will consist of financing our operations until we are able to reach a level of revenues and gross margins adequate to equal or exceed our ongoing operating expenses. Other than the notes payable discussed above, borrowings from our bank and the production credit facility with our suppliers, we do not have any credit agreement or source of liquidity immediately available to us. Given estimates of our Company's future operating results and our credit arrangements with our suppliers, we are currently forecasting that we will need to secure additional financing to obtain adequate financial resources to reach profitability. As of the date of this report, we estimate that the cash necessary to implement our current business plan for the next twelve months is approximately $2,000,000. We will be required in the near future to issue debt or sell our Company's equity securities in order to raise additional cash, although there are no firm arrangements in place for any such financing at this time. We cannot provide any assurances as to whether we will be able to secure the necessary financing, or the terms of any such financing transaction if one were to occur."
Red Flag #2:
2014 -$755,610 Earnings
2015 -$10,230,000 Earnings
2016 -$2,460,000 Earnings
Stock Analysis
SGMD - Sugarmade Inc. trades on the OTCQB market. The OTCQB is the middle tier of the three marketplaces for trading over-the-counter stocks. The stock has not been heavily traded before 11-02-2016. Since then the stock rose to $0.40 and came all the way back down to $.05 as of 1-23-2017. Volume has increased significantly within the past 2 weeks and looks to continue through February.
A/S. 300M
OS. 203M
Restricted 162M
Float. 41M
My opinion and comments: While the company has a big debt issue, SGMD continues to move forward and innovate in the MJ sector. Recent patent news says they are NOT sitting around on their previous Product line and its revenues but rather looking forward as ALL companies should do. I will be following the company closely as they reveal their provisional patent details relating to their unique cannabis packaging IP.
TL;DR Sugarmade has acquired rights to important patents specific to storage, transport, and pathogen reduction in cannabis. Acquired intellectual property to allow for prolonged storage, reduced THC loss and active treatment of dangerous pathogens. Stock trades on the OTC and is currently .14 per share.
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