Hot Penny Picks

[Peter Smithson]

Our new Hot PICK!! SGD Holdings, Ltd. (SGDH) - 2/27/11

SGD Holdings is the perfect stock to take advantage of while it’s still under the radar; because once it gets out there it won’t be trading at these prices for long, just look at the facts:

First and foremost what they do:
SGD Holdings through its wholly owned subsidiary, EcoPaper, Inc. is the first company in the history of the paper industry to create and market treeless paper of a superior quality. Every page of EcoPaper is smooth, acid-free, durable, chemical-free, and made in Costa Rica. EcoPaper, Inc. has developed an innovative and economically feasible option for the potential removal of 230,000 tons of agro-industrial waste that are dumped yearly in Costa Rica alone. The company’s challenge is to invent new processes and create paper from exotic tropical fibers from waste materials in new textures and tones for consumers. The results of processing these exotic tropical fibers are items that both appeal to the consumer and positively impact the environment.

Share Structure:
A/S: 200,000,000
O/S: 88,856,377
Float: 23,687,318

We have made SGD Holdings our new Hot Pick because it is creating real revenues, it is in a hot sector, and it is growing at a lightning fast pace.

Current PPS: 0.036

About one year ago SGDH was creating $84,697 in sales through its subsidiary EcoPaper.com, which is not bad for a penny stock with a market cap of 3,243,258. But with an active CEO with a mind for business they have increased their revenue from EcoPaper.com to a whopping $3,444,945 in the same period, that’s a 3967% increase in revenues in just one year. With explosive growth in the thousands of percent from 2010-2011 it is very conservative to say SGDH will easily grow another 100% in 2011-2012. The cherry on top of that is the fact that SGDH hasn’t changed their O/S for the last two quarters meaning that they aren’t diluting and don’t plan to.
http://finance.yahoo.com/news/SGD-Holdings-Ltd-Announces-iw-2103923400.html?x=0&.v=1

Let’s Look at the Numbers:
If SGDH doubles revenues this year (conservative estimate) they will That’ll be $7,000,000, then get at least 10% of that as profit = $700,000 profits x 20 for P/E is 14,000,000 mkt cap which is .16 PPS, and if they can double again in 2012 then that’s .32. But remember that’s only assuming if they double, if they do another 3900% next year SGDH could fly into the dollars. .16 PPS sounds nice, seeing as how that’s a 344% gains from where it is priced now, but it gets better. SGDH has signed a letter of intent to acquire Alcor Corp. which produces annual sales of $5-10,000,000 which is an easy .20 - .30 on current PPS it’s pretty easy to see why SGDH could easily reach 1$ a share by the end of 2011 which is 2678% gains from where it is now.

The cherry on top:
SGD Holdings has 528,992 dollars in debt in notes outstanding and they plan to get rid of it all. The CEO, Harry Johansing has a note worth 71,992.23 and is willing to forgive 50,000 worth of it in exchange for 714,286 shares of SGDH restricted stock. Let’s run those numbers:

50,000/714,268 = 0.07

That comes out to .07 PPS which is about 100% above what the stock is trading at currently. If the person who knows the company best, the CEO, is willing to do this there can be only one explanation: he expects the stock to be trading at that range if not higher in the future. That isn’t the only good thing that comes out of this transaction, it also reduces the debt of SGDH by about 10% which is a very good first step to being debt free and reaching their overall goal of attaining “tier 1 financing to continue its current pattern of growth, debt reduction is crucial to allowing us to deliver our high-quality, environmentally friendly products to a broader audience of international consumers. I believe this conversion will create additional opportunities for our family of companies and for our investors."
http://finance.yahoo.com/news/SGD-Holdings-Ltd-Reduces-Debt-iw-1902076663.html?x=0&.v=1

With the growth rate that SGDH has this increase in PPS will happen sooner than later, so get your shares and fast and let’s have a fun ride up.

Go SGDH!