Disappointment, Denial, and Acceptance (an Update on SGI)

SGI released their 1Q report on 2013 and the figures are disappointing. Revenues decline by 37%, selling and distribution costs increased by 34%, and inventories soared by 144% all because of the disappointing sales of myPhone.

I did my usual due diligence, being aware with what is happening around, talking with friends, looking at myPhone booths pretending to be an interested buyer and all points to the myPhone brand on a decline. They were attracted to myPhone’s nearest competitor, Cherry mobile, specifically, Cherry mobile Flare.

I noticed it but was on denial. I guess that is what they say: “Never marry a stock.” Lesson learned.

And so I accept my mistake and lightened on my position on SGI.

There will be an upcoming annual stockholder’s meeting for SGI on June 27 to be held at the Fairways Dinning Room, Manila Golf & Country Club, Harvard Road, Forbes Park, Makati City, 3 PM. I would like to attend if only I live near the area.

I have many questions for the management:

  1. What are your plans for myHouse? Are you planning to participate in any PPP’s considering the lack of classrooms?
  2. What are the updates for Golden Hill project in Nanning China? How many % sold is the project in pre-sales?
  3. Starworld has a 118 ha. development project in Calamba Premier International Park, how many % sold is the project? Average selling price per lot?
  4. Does SGI have plans to acquire more debt to leverage myHouse and Golden Hill project?

Disclaimer: I do not claim to be an expert and nothing I say should be taken as a recommendation to buy or sell. Read more in the ABOUT page.

Disclosure: See Portfolio page for my holdings.


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