While it is true that some stocks in the cannabis sector may have made an upward move in recent days, it did not work that way for Sugarmade Inc (OTCMKTS:SGMD) on Monday.
Trading Data
On Monday, SGMD stock fell 20% to $0.0004 with more than 98.60 million shares, compared to volume of 45.83 million shares. The stock moved within a range of $0.0003 – 0.0005 after opening trade at $0.0004.
Sugarmade (SGMD) Issues Shareholder Letter and Corporate Update
The company’s stock was in the middle of a strong selloff yesterday and ended the day with a decline of as much as 20%. In this situation, it may be important for investors to figure out if the stock is going to continue to slide or if it could actually make a recovery. The emerging firm in the licensed cannabis space was in the news yesterday after Jimmy Chan, its Chief Executive Officer sent out a letter to its shareholders.
In the letter, Chan noted that the cannabis market in the state of California was in a state of evolution and had created a range of opportunities for Sugarmade. However, he added that on the short term there was turbulence in the cannabis sector in the state. However, the situation wold get better and in the long term, the Californian cannabis market could be one of the brighter spots. However, it seems that the warning about short term turbulence may have put off investors and led to the remarkable selloff.
Technical Data
SGMD stock is trading below the 20-Day and 50-Day Moving averages of $0.0005 and $0.0005 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0013.
