Soyo Group Could Be Worth $0.40/Share in 2009
Soyo Group, Inc. [[SOYO.OB]] is a distributor of electronics, communications and computer parts that has been gaining attention among OTC investors. The micro-cap company projected $2 million in profit on $110 million in revenue for 2009 despite the weak economic environment. The distributor plans to develop its brand in new markets while focusing on higher-margin items.
“With the expectation by consumer electronics marketing experts that the sector will experience continued price erosion in 2009, my strategy is to use Soyo’s unique strengths to grow our revenues by 5-10 percent, return the company to profitability and be well positioned for the next economic growth cycle,” said Ming Chok, president and CEO in a recent press release.
Soyo has been profitable during the last two years and expects to break even in 2008 despite the worsening economic environment for consumer electronics. Currently, many investors expect the company to earn $0.04 in 2009 via several new initiatives. This would give the company a price-earnings ratio of just 4x earnings despite its rapid growth rates, making it an exceptional investment for many.
Soyo also introduced several new products during the 2009 Consumer Electronics Show, which took place between January 8th and the 11th. These products included new 3D HDTV and monitors, Honeywell digital information displays, HD crossover personal computers, and over 20 Soyo and Honeywell HDTV models at substantially lower prices than the competition.
In the end, a reasonable 10x earnings multiple in 2009 will equate to a stock worth $0.40 per share – a 200%+ premium to the current market price. A series of new product releases, strong sales channels, additional partnerships and entry into new markets should help the company’s $0.04 per share earnings materialize in 2009 and this stock may be ready to soar.
Shares of Soyo Group traded down $0.005, or 2.7%, to $0.18 per share in mid-day trading.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com