TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
I have a love/hate relationship with SG Blocks (SGBX). I love the company, its product, and its story, but I hate the stock. Over the past 1+ year, I have seen this stock trade zero shares for weeks on end and plummet more than 50% in choppy trading. But this should be expected for a micro-cap company that has an average 3 month volume average of less than 10,000 shares and is worth less than $4.3M in market cap (I’ve seen market cap as high as $21.5M over past year). Anyone who puts money in a stock with such risky characteristics should expect to never see that money again. This is a lottery pick, one that has the potential to generate impressive returns over a long period of time, but most likely will not. But it might! But probably not. That was my mindset when I purchased a few thousand shares of SGBX over a year ago (and it continues to be).
Having said that, SG Blocks is a rare micro-cap company in that it actually operates a growing business and does not participate in promotional stock campaigns to prop up its share price and improve trading liquidity.
What Does SG Blocks Do?
Simply put, SG Blocks is a construction company.
SG Blocks provides an alternative to traditional stick-built homes that is cheaper, stronger, and eco-friendly: shipping container homes.
The company retrofits out of use shipping containers to construct a safe green building block, hence the name, SG Blocks. These SG Blocks are then used to construct everything from pop-up retail shops, to U.S. military housing, to luxurious beach homes (pictured above). The company develops the units for a specific project, delivers and installs the units on site in a fraction of the time it takes with traditional stick-building construction methods. In some cases, the on-site installation of the container structure can take less than a day, as did the recently completed 11-unit Bareburger restaurant in Long Island. SG Blocks’ product is building- and inspection- code approved, and offer several benefits to the environment, developer, and home owner.
