So long, SOYO

SOYO Electronics has dropped to the point of no return, so I've cashed out to salvage what value is left:


I held out hope that this former microchip manufacturer could segue into the consumer electronics industry, but they've not been very successful - by all accounts, their products have been good, but they don't know how to define their niche, establish a market for themselves, or compete against more established firms ... and they don't seem to be learning from their mistakes.

And so, it's time for me to bail. I'll keep an eye on the press releases to see if they bring in some talent to help them make the transition - but for now, I'm no longer willing to fund their clumsy efforts.

Weekly Summary

Another week has gone by, and the ups and downs in my holdings have once again balanced out:


SOYO has puts its toes across the point of no return (a 50% loss) and I will be looking to unload it and cut my losses unless there's some significant development in the next few days; GOIG has been there for a while, but it's so thinly traded that it's impossible to unload my shares at any price.

On the brighter side of things, I'm beginning to consider when to take profit from KKD, which has shot upward but seems to have reached a new plateau, and FEEC, which I already cashed out my original investment, and whose star also seems to be fading in recent weeks.

SOYO Inc. Reports First Quarter 2008 Financial Results

In a press release today, SOYO announced significant growth in their net revenues:

The Company reported first quarter net revenues of $24,795,315 for the three months ending March 31, 2008, an increase of 68.8% compared to $14,691,110 in the first quarter fiscal year 2007. Gross margin for the first quarter 2008 was 3,106,104, as compared to 2,608,196 for the first quarter fiscal year 2007. Income from operations for the three months ending March 31, 2008 was 809,567 as compared to 414,437 for the same period in 2007.

Since the company has doubled its revenues and profits, it would stand to reason that he demand for its stock, and the price buyers will be willing to pay, should follow. I don't expect it will quite double, but I'm hopeful there will be a significant bump, possibly enough to get this one out of the red.

In Search of a Niche

A press release today entitled "SOYO Continues to Target the Spanish Speaking Market" boasted that ...

[The company's] 32-inch and 47-inch SOYO brand of LCD TVs are now available through Shop Latino TV. Additionally, the 32-inch and 47-inch LCD TVs are available through the Shop Latino TV website

This is a bit of surprise, as the company had another press release on February 20 of this year entitled "SOYO Continues to Target the Niche Consumer," in which it claims to be specializing in smaller sets for dorm rooms and recreational vehicles.

In the end, it's pretty clear that the company continues to clutch at straws, desperately looking to appeal to a target market in which they can be profitable. As much as I'm pulling for them, they could learn a thing or two about marketing ... or at least about consistency of message, and vision.

SOYO's Aspirations for 2008

In a press release this morning, SOYO Group shared its dreams for the upcoming year:

For the fiscal year 2008, SOYO projects net revenues of at least $140 million, and projects net income of at least $5 million. The Company expects to see significant growth in its SOYO and Prive brands, and a new revenue stream with the introduction of the Honeywell Consumer Electronics product line.

These seem like lofty goals from a company that managed to produce half as much income on less than a quarter the revenue in FY 2007, but they are not entirely unreasonable given their rapid growth since expanding into consumer electronics.

A conference call is scheduled for next week to answer shareholder questions, though admittedly, I probably won't tune in to hear the details. Until they start shipping units and banking profits, it's just talk.

SOYO to Release 2007 Year End Results

Today, SOYO Inc. announced that the company will release 2007 year end results and fourth quarter numbers on March 27, 2008, but did not disclose any details that would support or undermine the general sense among investors that the company may be gaining strength.

I don't expect the 2007 numbers to be encouraging, as the company has only recently begun to scale its production and distribution and position its products within the marketplace.

However, confidence may waver and many investors who (unreasonably) expected the company to be an overnight success may dump their shares. It may be a good opportunity for anyone with a long-range perspective to load up and average down.

Soyo Group (SOYO)

Company:	Soyo Group
Web Site:	http://www. soyo.com
Purchase Price:	$0.97
Current Price:	Click Here

The Soyo Group is a small consumer electronics firm that has been struggling for years, but recently has seemed to have gotten its act together. They have been running in the black for the past three years, and their net income is growing at a remarkable rate, and they are making significant inroads into Latin America.

My expectations are that the investment community will eventually take notice of this company and demand for its stock will spike. It may take a few months or a few years, but my sense is the firm will be viable for the long-run.