Why are SG Blocks Inc Shares Rising?

1 minute

As of July 12th, 2019, SG Blocks, Inc. (NASDAQ:SGBX) is seeing massive spikes in its shares, leaving investors and day traders wondering what exactly is happening and if there is an investment opportunity in this stock. At the heart of it, with a 144.62% increase from its last close of $0.65, the financially savvy are wondering if they are leaving money on the table.

In today’s article, we’re going to address what you should know about SGBX and whether or not it’s worth paying attention to.

Why are the SGBX Stocks Increasing?

SG Blocks, Inc. (SGBX) had some big news earlier in the day when a report was released vis-a-vis Yahoo Finance titled “SG Blocks Executives Governing Company Agreement related to $55 Million Monticello Project. In a nutshell, this article reveals that SGBX, a leading designer, fabricator and innovator of container-based structures, has executed an agreement that will create a new project for the business that anticipates involvement in 302-unit multifamily projects.

Furthermore, during the phases of construction of these multifamily projects, the initial gross profit margins of SG Blocks, Inc. (SGBX) involvement will be $2.6 million. While finishing details are currently publically unspecified, industry experts expect further profits during the latter half of the project- all very good news, Paul Galvin, Chairman and CEO of SG Blocks, has proudly commented.

What does this mean from a pure investors point of view?

Based off the current readings of SG Blocks, Inc. the two week RSI is 77.39. This number suggests that SGBX is due for more price movements over the next several days. It also suggests that excitement of the news has spurred in investors who may be unfamiliar with trading in general. Put simply, the stocks seem to be oversold, leaving some to believe that SGBX will settle more closely to $0.69 to $0.74 over the next several weeks.

It’s also been gathered from other analyst sources that equity in SGBX is still mostly agreed upon to be a “buy” across the board. However, it’s to note that this isn’t a buy for day traders only because some analysts believe that if the stocks do start settling around $0.69, that it may hit a low of $0.56 before then. So this is a strategy of holding a company in the belief that it will continue to stay in the direction over the long run than it is something to sell short in the immediate.