SGD Holdings Ltd (SGDH)

[Ole Broke Azz]

Food For Thought

As most of you know I have been in this stock for over 2 years. That is not my normal patter...I am a trader...not an investor. In the past an investment was a day trade gone bad...in other words to be an investor I had to be a bagholder.

SGDH is different for me. I look at the background players of this stock and it is one of those things that makes me go hmmmmmmmm

Here we have a penny stock that has a real live billionaire investor involved. Paul Orfalea is not an imaginary person he is the one and only founder of Kinko's and he sold Kinko's to Fed Ex for 2.4 BILLION DOLLARS. According to the year end financials that original investment is still intact. Then if you look at the disclosure statement you will see that not one single share was converted from the convertible promissory notes. Not only were none of them converted... the person/persons that own them extended them by 3 additional years and cut the interest rate from 20% to 8%...to be calculated retroactively to the initial issuance date.

Then if you read further and pay attention you will see that someone (appears to be the same investor that cut the interest rates) bought two additional notes that has seemingly brought all of the notes into one house.

So, we have all of the notes in the company (except the Orfalea Note) in what appears to be safe and friendly hands. They are not only in safe hands they are not being converted...remember no shares have been converted since November 2011.

Here is where it gets interesting to me... take a look at this 3year weekly chart. I didn't add a bunch of indicators because most of the indicators that traders use are lagging indicators... meaning they don't tell you what a stock is going to do... they tell you what it has already done or at best what they it is doing currently. Some traders use these indicators to try and predict what a stock is about to do but IMHO a stock has to be liquid for those type of indicator to be even close to predictable. The only indicator I am looking at is the ACCUMULATION/DISTRIBUTION. I defy anyone to find me a penny stock that has even close to the same trend as this indicator.

SO...

Paul Orfalea = Original Investor and his note is still intact

Loose Convertible Promissory Notes Being Purchase

Shares are being purchased by the company and retired (2,000,000)

Loose Shares are being collected and cancelled (15,000,000)

Am I just a drunken ole fool or does that make anyone else go hmmmmmmmmmmmmm. Here is what I believe. This stock is being accumulated by someone or a group of someones that have locked up the notes to keep shares out of the market and they intend on buying up the float. That would explain why they are content to sit and buy them at .02 for as long as it takes. On Friday there was about 30,000 shares at .0268 and then a few at .029 and a few more at .03, but other than that there is nothing out there. Then someone with 500,000 shares can't stand it any longer and dumps them with a limit sell at .0175. This is exactly what these guys want...to buy all the shares for as cheap as possible. Doesn't really matter how long it takes because they own all the notes and if they are not converting then it is only a matter of patience.

here is the question: What do you think they are going to do once they have all of the shares they want? That is not a real head scratcher to me!!

the ACCUMULATION/DISTRIBUTION Indicator and what I have just laid out is all that I need understand and as long as that doesn't change then neither do I

3 YEAR WEEKLY CHART MINUS ALL THE BS INDICATORS