Excerpt from GeoBargain & Special Update - Performance Laggards Article
Songzai Intl Holdings (OTCBB:SGZH)
As we indicated on Monday, November 16, 2009 GeoBargain Songzai Intl Holdings reported weak third quarter results. The stock responded by falling sharply. We are keeping SGZH on the GeoBargain list as it appears that the poor third quarter performance may be due to a one time event. Excerpt from our recent discussion note: "The decrease in sales was mainly due to the temporary closing of a major power plant customer for one month in July for overhauling and maintenance of its boilers.” Unfortunately, with no press release, investors have to dig into Songzai’s 10Q filing to locate this info. It is our belief that a responsible public company should take the time to alert investors with press releases to compliment its filings. We will make a suggestion to the Company to issue a press release, an action that may alleviate recent concerns. Songzai should also communicate how much of the decline in sales was the result of the closing of its power plant; would the revenue comparison have been flat or shown growth?
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