SGOCO Group, Ltd. (NASDAQ:SGOC) shares rose sharply Friday after jumping over 27% on Thursday.
SGOCO is a conglomerate with four primary businesses — virtual reality, energy saving technology, mortgage lending and real estate investment. Based in China, the multihyphenate company was thrust into the spotlight in July thanks to a two-session performance that saw SGOC stock soar 675%.
The company faces obstacles including a ramp-up in Chinese government regulation and the increased risk of Chinese stocks being delisted from American exchanges.
The latest challenge for SGOCO Group has tied key shareholders to an international fund fraud scheme operating out of Hong Kong. That news has had shares sliding, the latest hit being an 8% drop on Friday.
By pretty much any definition, SGOC has become a meme stock. This is a company that reported less than $5 million in revenue in 2020, but saw its stock rocket 675% in two sessions, for no apparent reason. No big deal signed, no earnings report, just a lot of chatter on Reddit.
However, SGOC stock is, according to industry watchers, more than just a meme stock.
SGOCO Group’s businesses have credibility. For example, its Century Skyway VR company partnered with Razer — a well-known premium PC gaming brand — to develop Razer’s OSVR open source VR gaming headset. The company’s real estate arm has investments in two Hong Kong properties and owns a 21-story Hong Kong building. Holdings in the world’s most expensive residential real estate market are going to pay off, no two ways about it.
SGOC moved into mid-morning Friday ahead $1.44, or 17.7%, to $9.60.
