SGOC DD...
LogicalGains Share Tuesday, April 17, 2012 9:22:41 AM
Re: None Post # of 25052
SGOC DD - earning watch for Apr last week.. IMO shares are at bargain now ..
Last year SGOC was trading in 3.5$ range when this 2010 earning is released.. And on that day only 8850 shares were traded but this year I expect more trading to happen when SGOC earning released this month.. Most likely by in the last week of Apr like last year.
Why I am thinking that SGOC will move higher from current level when earning hits?
1) SGOC expects 1000 retail partners by end of 2011 compared to last year 600. Per the 2011 3rd quarter earning they had 755 SGOCO Image partners as of September 30, 2011
2) $ from subsidiary sale:
The Company entered into an Agreement for Sale and Purchase ("SPA") with the Buyer pursuant to which it sold all of the outstanding capital shares of Honesty Group ("Sale Shares") for cash consideration of US$76 million. The transfer of the Sale Shares was effective on November 15, 2011. The cash consideration will be paid in installments over the next four months
2010 earning highlight for your reference, and this year even if they provide same #, + subsidiary sale$, I am expecting EPS to jump.
2010 Financial Highlights vs 2009:
• Total revenue increased 220.2% to $217.3 million, compared to $67.9 million;
• 75% of sales were of SGOCO brand products compared to 79%;
• Gross margin was 15.1%, compared to 14.9%;
• Operating income increased 180.7% to $25.6 million, compared to $9.1 million;
• Net income increased 178.4% to $19.9 million, compared to $7.2 million;
• Diluted earnings per share grew 121.0% to $1.86, compared to $0.84*; and
• As of December 31, 2010, the Company’s distribution network included 603 SGOCO Image retail partners, as compared to 70 at the end of 2009.
SGOCO Business Model and Outlook for 2011
SGOCO’s portfolio includes six different high quality brands which are distributed at competitive prices to the emerging Chinese consumer through over 600 SGOCO Image retail partners. We expect to continue to increase our distribution network in 2011 and reach over 1,000 SGOCO Image retail partners by the end of the year.
We believe that we have positioned SGOCO well ahead of the competition. Most of our competitors in the emerging Chinese domestic market either focus on the low margin OEM business or offer generic brands that lack the international quality standard and rich feature set of SGOCO products
