Solid Group, Inc. or SGI in the Philippine Stock Exchange, the name behind the only Philippine-mobile phone brand MyPhone, pocketed PHP 2 billion in unit sales for the year 2010, reflecting a 9-fold sales increase from 2009. The company holds as much as 40% of the Philippines’ mobile phone market and with the introduction of more affordable phones that are wifi-capable and the apparent improvement in consumer appetite, revenues for 2011 could even be rosier. SGI is also looking to launch a tablet PC that is similar to Apple’s iPad this year.
From a technical perspective, the shares of SGI have been consolidating into what appears to be a very wide cup and handle formation for about a decade now before finally breaking out from the pattern just today. If SGI manages to keep itself above the pattern’s neckline which is around PHP 1.06 in the next few days, then it could spring all the way up to just below PHP 2.00. No technical resistance are on the horizon which means that its upside target could be reached sooner than later.
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