Miles J. Stoner, @StockHollywood

Dallas, Texas

2.17.2012

SGI - Investment Relations Call

So I decided to do some due diligence and get SGI's investment relations guy on the phone and ask him why did their revenue do so well, but the eps (earnings per share) miss just awfully and this is what he said:
  • SGI Q1 .04 v. .25 eps 
    • So that means they had 4c earned a share and what was expected was 25cents, which will kill your stocks price and as you can see its dropped drastically from 15 to 9.
  •  SGI Japan acquisition and cost hit them this quarter, its a 1 time cost, but its dropped their gross margin line (Gross_margin Def) by 3%. 
  • He rambled on about a few other costs that should set them up long term, but hurt them in the now.
Purely technical

we look for big over exaggerated sell offs so we can take advantage of the fear and panic and get long.
8.5 was the # I was looking for so I'm hoping that we get another pull sub 9's and are able to get long, watching closely now as 9.5 seems to be holding up well.