Success Entertainment Group Jumps After Announcing First Quarter Earnings
When a company announces its financial results, then its stock almost always moves one way or another, and that is what happened with Success Entertainment Group Intl Inc’s (OTCMKTS:SEGN) stock on Tuesday. The company announced its unaudited financial results for the first fiscal quarter ended March 31, 2020, on Tuesday.
Earnings Review
The company announced there was a significant hit to the revenue in light of the fact that SEGI had to wind down its overseas operations. However, it added that the Medical Infrastructure division of its subsidiary Renavotia Infratech and the acquisition of Utility Management Corp is going to bring in more than $5,000,000 in revenues for 2020.
In addition to that, SEGI also provided an update with regards to its expenses. The company stated that since it is trying to grow in a wide number of areas like social media programs, telemarketing, website development, and virtual agents, among others, it expects to incur expenses on those fronts.
There will also be an expansion in headcount, but SEGI was quick to add that the rise in expenses is going to be adequately offset by the rise in revenues in 2020. That is a highly important statement from SEGI, and it is possible that it was the reason why investors piled on to the stock on Tuesday.
The SEGI stock rose by as much as 12% after the announcement yesterday, and it remains to be seen if it can add to its gains through the rest of the week. Investors could do well to keep an eye on the stock over the course of the coming days.
Other Developments
Back in June, the company had also announced that an acquisition by its subsidiary Renavotio Infratech had been delayed due to the business disruptions unleashed by the coronavirus pandemic. The two entities had signed a letter of intent. However, they changed it into a definitive LOI by way of which Renavotio is going to acquire the company United Management Corp and its pair of subsidiaries.
The two subsidiaries in question are Cross-Bo-Construction LLC and Utility Management Company LLC. It should be noted that the parties involved have changed the previously signed letter of intent and are going to work in good faith to complete the said acquisition. It might be construed as a setback for SEGI, but it should be noted that the acquisition is very much still on track.
SEGI has also managed to expand its business somewhat in recent times, and back on June 12, the company announced that it into data purchase and services agreements with the company Cicero Transact Group Inc. Cicero is going to help in building a range of websites for SEGI.
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