What Happened at SGA?

SGA Holdings and other related parties sold and gifted a total of 9,142,065 shares. This was due to the conclusion of stock trading, termination of collateral agreements, and gifts to related parties. SGA Holdings’ massive sell-off, in particular, raises questions about potential management changes.

Reasons for the Sell-off and Fundamental Analysis

SGA experienced poor performance in the first half of 2025, with declining sales and widening operating losses, coupled with worsening liquidity. This situation further fuels speculation about the motives behind the major shareholder’s stake sale. Although a capital increase is planned through a rights offering in July, management uncertainty remains. While there are positive factors like the pursuit of new AI businesses, the impact of this stake change is expected to be greater.

SGA Stock Forecast and Investment Strategy

In the short term, downward pressure on the stock price is expected. Management uncertainty and poor performance are likely to negatively impact investor sentiment. The medium to long-term direction will depend on the emergence of new investors, management stabilization, and the performance of new businesses. A conservative approach is recommended for now. Investors should closely monitor the new management’s vision and business strategy, as well as the use of funds from the rights offering.

Action Plan for Investors

  • Short-term investors: Be mindful of increased stock volatility and the possibility of further negative news.
  • Long-term investors: It’s advisable to make investment decisions after confirming management stabilization, performance improvements, and the success of new businesses.