- 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://cnw.fm/rFRn3) 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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