SGOCO Group (SGOC) is apparently one of those stocks that see a gain with a little bit of Internet chatter.
SGOC is up more than 30% today — at a two-year high — prior to its earnings release, which is scheduled for this week.
Why Is SGOC Soaring?
A blog post at Seeking Alpha yesterday gave hint to investors that SGOC stock may follow the same path as InterCloud Systems (ICLD), which saw revenue increased 448% to more than $16 million in the third quarter — with a net income of $1.3 million.
ICLD stock saw a boom this week, posting a 50% increase just a few days ago after its surprise earnings. ICLD offers cloud and managed services, as well as consulting services and voice, data and optical solutions to assist its customers.
The post hinted that SGOCO Group may see a huge surge in growth and a return to profitability.
Shares of SGOC have surged immediately following its earnings report in each of the past three quarters. This coming quarter should be nothing short of a blowout, with extremely favorable comparables relative to the prior three quarters. Specifically, SGOC is up against a 2012 Q3 loss of 6 cents on revenues of $26 million.
Last quarter, SGOC posted $.20 on over $59 million in revenues, representing top-line growth of 38% and bottom-line growth of 175%. Additionally, the company provided a very bullish outlook in its release. Even if SGOC shows no sequential growth, which is highly doubtful given the Q2 commentary, the headline numbers should turn heads and drop jaws.
SGOC designs and distributes liquid crystal display consumer products, including LCD personal computer monitors, LCD televisions, light emitting diode back-light modules and application-specific LCD systems.
SGOC stock is up 515% year to date.