- Investment
analysts recommend a share price of $0.30, more than double last week’s
rate
- Sugarmade
poised to supply equipment to burgeoning numbers of cannabis cultivators
- Company
has expanded into the European market
Independent research firm SeeThruEquity has commenced
coverage of Sugarmade, Inc. (OTC: SGMD), a hydroponics supply company. In its
initial report, SeeThruEquity (http://ibn.fm/qsInW) noted, “Sugarmade appears
well-positioned to target the large and growing opportunity to supply
hydroponics equipment and supplies to the cannabis cultivation market in the
United States through its master marketing agreement with BizRight.”
In the report, SeeThruEquity recommends a target share price
of $0.30 for Sugarmade, which is more than double last week’s price of $0.13.
The report continues, “Sugarmade is differentiated from many companies in the
cannabis space in that it is generating revenues, which are expected to surpass
$30mn in FY2019. If achieved, the target of $0.30 represents potential upside
of 130.8 percent from the recent price of $0.13 on September 3, 2018.”
The report highlights several of Sugarmade’s growing revenue
streams. The company has expanded its hydroponics supply business into the
European market and has entered a marketing and distribution arrangement with
BizRight Hydroponics Inc. aimed at creating the world’s largest publicly traded
cannabis supply company. In addition, Sugarmade last month announced that it is
moving into the hemp industry through a $1 million investment in Hempistry, a
company producing ultra-high cannabidiol hemp.
Through its BudLife brand, Sugarmade has developed a storage
and packaging system for marijuana that preserves potency, prevents
contamination, protects against pathogens and increases the shelf life of
products. The system works without refrigeration, since cold temperatures can
degrade the active ingredients in marijuana.
Sugarmade CEO Jimmy Chan said that the SeeThruEquity
coverage is very important to the company’s management team. He explained that,
over the past couple of years, the company underwent a vast restructuring
process during which it has managed to enter one of the fastest growing
economic sectors, reduce debt, expand personnel, move quarters and position
itself for substantial growth.
“Based on our growth rates, we now believe our $30 million
revenue guidance for next year is very conservative. We welcome SeeThruEquity’s
research coverage and look forward to supplying its analyst a steady stream of
news on high quality developments regarding our progress,” Chan said in a news
release.
He added that Sugarmade shares SeeThruEquity’s view of its
chosen marketplace and sees continued growth in the states that have already
opened up to cannabis legalization, with additional growth opportunities as the
remaining states and Europe relax regulations.
Sugarmade’s subsidiaries include ZenHydro.com, an online
shop that sells hydroponic equipment for domestic and commercial marijuana
cultivation. The retailer’s products include grow lights, bulbs, nutrients and
pest control supplies.
In addition to its ancillary services to the marijuana
industry, Sugarmade supplies food and drinks containers for fast service
restaurants through its CarryOutSupplies subsidiary. CarryOutSupplies produces
a wide range of generic and branded products, including cups for hot and cold
beverages, ice cream and yogurt, spoons and soup products. The company has a
share of between 30 and 40 percent of this market.
For more information, visit the company’s website at www.Sugarmade.com
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480.374.1336 Office
Editor@QualityStocks.com
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