SGOCO Group, Ltd. (SGOC), a company engaged in the protection of the environment and the creation of energy saving technologies, has experienced an increase of 11.89% in the premarket trading session. As a result that, SGOC stock is changing hands at $9.13. On Thursday, the company saw an increase of 27.50% increase in share price.
Push by Wall street traders
On the 18th of August, SGOC stock surged some 75%. That massive surge came despite the fact that there was no-issuance of a press release or any earning announcements. The reason for that massive jump was that the Wall Street traders betted on Reddit. These elements had tried even before to push the SGOC stock despite of the absence of any fundamental news.
Appointment of CFO by SGOC
On 29th of July, SGOC appointed Mr. Chung Hang LUI as its Chief Financial Officer (CFO). LUI replaced Mr. Xiao-Ming HU as CFO. Prior to that, Mr. LUI was the Director of Amaz Global Limited (AGL). There, he carried out numerous successful business strategies to give astounding success to AGL. He holds a Bachelor’s Degree in Marketing and a Master’s Degree in Accounting from RMIT University, Australia.
Release of annual financial results
On 7th July, SGOC released the financial results for the fiscal year 2020. According to the details, the company generated net revenue of $4.29 million, as compared to net revenue of $5.11 million during fiscal 2019. The cost of revenues stood at $5.35 million, as compared to the cost of revenues of $2.38 million during fiscal 2019. The gross profit stood at $1.06 million, as compared to gross profit of $2.73 million during the previous ear. The total operating expenses stood at $66.27 million, as compared to operating expenses of $3.46 million during the equivalent period of 2019.
SGOC, a meme stock
On the 9th of July, SGOC stock was up a massive 500%. There wasn’t any news or press release behind that sharp fluctuation in share price. The high jump of SGOC stock was attributable to it being a meme stock. The Reddit traders were thought to have brought the shares in bulk.
Issuance of deficiency letter
On the 21st of May, SGOC announced to have received a deficiency letter from NASDAQ. The letter notified that the company was not any longer in compliance with the Nasdaq Listing Rule 5250(c)(1) for continued listing. That action came after SGOC failure to meet the deadline for timely filing of annual financial results for the fiscal year 2021. The Nasdaq Listing Rule 5810(c)(2)(F)(i) made it compulsory for SGOC to submit to a NASDAQ plan before July 16, 2021. The company said that it intended to submit the compliance plan as urgently as possible.
What lies ahead for SGOC stock?
Based on the annual financial results, it is expected that SGOC could carry on its momentum of gain during the near future as well. With the effects of pandemic subsiding, the market situation around the world is getting better, so, SGOC could generate tremendous revenue in the next fiscal year. For SGOC stock, the situation could remain volatile with some wild swings, the reason being a meme stock. So, for this reason, potential investors should keep a close watch on SGOC stock.
