$SGMD Chart Flashing Multiple Major Signals SimultaneouslySGMD shares have turned a critical corner in the past two months, breaking a long-term bear trendline, finding a clear basing pattern of support, and shifting overall trend direction.
Shares now rest on key support at the 200-day MA (green line) as RSI sits at the 40 bull signal print and company starts talking about verticalizing its cannabis operations.
SGMD has built a successful cannabis delivery business in California, posting huge growth last year, quickly racing into the millions of dollars in annualized revenues. And now it appears to be working toward verticalizing its operations to drive wider margins through supply chain control.
Sugarmade Inc (OTCMKTS:SGMD) most recently put out a corporate update focused on information about the recent opening of its new Nug Avenue cannabis delivery operation, which is located in the large and rapidly growing Los Angeles metro cannabis marketplace.
“We are moving forward with our core strategic plan, as announced and discussed during 2020, which consists of expanding our end-market access as a central player in the growing California cannabis delivery marketplace and developing our cannabis production capacity to verticalize our operations in the space,” noted Jimmy Chan, CEO of Sugarmade. “The successful opening of our LA delivery hub is an exciting development with strong topline growth implications given the scale of that market and our strong positioning there. And our focus on developing a vertically integrated supply chain represents continued progress toward pushing more of that growth to the bottom line, which we believe is the most effective path to directly rewarding shareholders.”
According to the release, Sugarmade recently acquired a 70% stake in the operations of Nug Avenue, which serves as a major hub for cannabis delivery services in the Los Angeles metropolitan area. Nug Avenue has been open and operating with Sugarmade involved for the past four weeks, and the results have exceeded management expectations thus far.
The company also noted that it is actively pursuing acquisition of property zoned for cannabis cultivation and establishment of large-scale cannabis cultivation and production operations. As described in prior communications, Sugarmade intends to develop a full farm-to-door vertically integrated cannabis business.
Chan added, “Verticalization is an important step because it carries the potential to significantly widen margins. We have taken concrete steps in support of our goal of verticalization and expect significant additional movement toward that goal before the June 30th fiscal year end.”
In other words, big news could be coming soon from Sugarmade Inc (OTCMKTS:SGMD) that bears directly on this premise.
