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Tag: SGOCO Group

  • Why SGOCO Group Ltd. (SGOC) stock skyrocketed on Wednesday?

    SGOCO Group Ltd. (SGOC) shares jumped 12.88% in after-hours on Wednesday, July 14, 2021, and closed the trading at $14.90 per share. Earlier in the morning session, SGOC’s stock rallied 37.64% to close Wednesday’s session at $13.20. SGOC shares have risen 1157.14% over the last 12 months, and they have moved up 445.45% in the past week. Over the past three months, the stock has gained 654.29%, while over the past six months, it has declined 725.00%.

    Let’s have a look at SGOC recent news and developments.

    Nasdaq stock exchange compliance regained by SGOCO Group Ltd

    On July 14, 2021, SGOCO Group Ltd announced that it has regained compliance with the Nasdaq stock exchange.

    On May 18, 2021, SGOCO Group, Ltd received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market Incnotifying that the Company is no longer in compliance with the Nasdaq Listing Rule 5250(c)(1) for continued listing due to its failure to timely file its annual report on Form 20-F for the year ended December 31, 2020, with the U.S. Securities and Exchange Commission.

    About the company

    SGOCO is a conglomerate group of various businesses with its headquarters based in Hong Kong. The group is principally engaged in,Virtual Reality (“VR’) device and technologies research and development (b) environmental protection, energy-saving technologies, equipment development and applications (c) money lending business in Hong Kong providing mortgage loans to high-quality target borrowers with low credit risk who can provide mortgage collateral and/or third-party guarantee and (d) property investment to generate additional rental income to further boost the group’s cashflow over the long term.  The group’s vision is to operate as a conglomerate to build synergy within its sustainable ecosystem thereby create value for shareholders.

    Conclusion

    SGOCO has experienced extreme volatility in recent days as retail day traders have been piling into the Chinese fintech company, which was a penny stock not long ago. Yesterday’s surge was after it regained Nasdaq compliance. There is no other recent news available at the moment so it is hard to predict how SGOC will perform in the coming days.

  • SGOCO Group, Ltd. (SGOC) Stock Skyrockets as Latest Possible Target of Meme Stock Phenomenon

    SGOCO Group, Ltd. (SGOC) Stock Skyrockets as Latest Possible Target of Meme Stock Phenomenon

    SGOCO Group, Ltd. (SGOC) stock prices were up by an astounding 279.46% as of the market closing on July 9th, 2021, bringing the price per share up to USD$9.79. Subsequent premarket fluctuations have seen the stock surge by 44.02%, bringing it up to USD$14.10.

    About SGOC

    SGOC manufactures a variety of offerings, primarily phase change storage systems. Consisting of a number of businesses based in Hong Kong, SGOC focuses on VR technology, energy saving technology, mortgage lending, property investment, and a host of other growth segments across various markets. The company is continuously allocating resources towards the building of an ecosystem of sustainable growth that results in healthy gains in shareholder value.

    SGOC Financials

    The penny stock company is based in Hong Kong, with a market cap in excess of USD$1 billion. This is despite the company reporting only USD$4 million in revenue for 2020, ultimately proving itself to be unprofitable at the moment. The company also reported a liquidity position of USD$3 million, indicating a balance sheet that does not reflect its inflated market cap.

    SGOC as the Latest Meme Stock

    The company’s stock has recently skyrocketed by more than an astounding 500%. This is despite an apparent absence of significant news about the company or changes in SGOC fundamentals. Without proper contextualization, it seems possible that SGOC has become the latest target of the meme stock phenomenon that has swept through the market . This is reflected by the jump from an average 10-day trading volume of company stock in the amount of 664,000 to more than 100 million.

    SGOC Short Interest

    The meme stock phenomenon is driven by retail investors who target underdog companies in order to execute a coordinated short squeeze. Historically, meme stocks have exhibited a high short interest, which is not the case with SGOC. The company indicated a short interest level of 8%, casting doubt on its status as a meme stock. Nevertheless, data from Fintel reports a short volume ration of more than 25%. Even if the growth is not driven by the meme stock phenomenon, the limited evidence available does suggest the influence of momentum and day traders.

    Future Outlook for SGOC

    Refusing to look a gift horse in its mouth, SGOC is poised to capitalize on the expanded opportunities afforded to it in light of its recent explosion of equity value. Despite the inherent risk and volatility associated with meme stocks, the company is keen to allocate resources towards maintaining its trajectory of fortuitous success by ushering in more organic growth moving forward.