Case Studies

Perma-Fix Environmental Services, Inc. - A Strategic Repositioning

Prior to SGI being retained, Perma-Fix was an obscure public company whose stock was selling below $.60 and lacking any market recognition or support. Its share price suffered from the effects of a convertible financing that caused the stock to incur a severe short position. In addition, the Company was looked upon as a mundane environmental company, a sector that has shown mixed financial results.

Upon our being retained by Perma-Fix, we immediately refocused the Company's image with the goal of having Perma-Fix not just viewed as an environmental company, but also as a leader in the treatment of nuclear waste. Once that was accomplished, we created new interest on Wall Street and created strong demand for the stock with institutional investors and new market makers. In addition, we assisted the company in securing an investment banking relationship that raised over $41 million to build the largest facility of its kind on the grounds of a nuclear weapons plant in Oakridge, Tennessee, to start treating massive amounts of nuclear waste being stored since World War II. Furthermore, the investment banking firm, Ryan Beck & Co., initiated new institutional research coverage with a "strong buy" recommendation, and further, through our efforts, CNBC's The Edge did a nationally aired segment on Perma-Fix's nuclear treatment facility in Oakridge, Tennessee. The stock quickly appreciated by some 300 percent and substantially increased its daily trading volume since our engagement.

This is one of the accomplishments SGI has performed for a client - being able to fulfill our client's needs -- and at the same time, significantly helping to benefit our environment.

AT&T Latin America and Strategic Growth International - A Major Success Story: from $0.625 to $43

The success story of one of our telecommunications clients, AT&T Latin America (NASDAQ: ATTL) formerly, FirstCom Corporation, presents an example of how SGI's "hands on" approach can quickly benefit a company's recognition in the equity market.

FirstCom's shares traded as low as $0.625 upon the commencement of our engagement. In the time since we have been aboard, the stock has traded as high as $43.00, and has traded over 80 million shares of volume, with an average daily volume of over 500,000 shares.

At the commencement of SGI's engagement, FirstCom was a rapidly emerging telecommunications company based in Miami with operations in Peru and Chile. The Company had raised $150 million of high-yield bonds through Union Bank of Switzerland, and was expecting cash flow and EBITDA positive results by the end of 1999. The stock traded approximately 5-10,000 shares a day, and was sluggish because of a large overhang in the market resulting from almost 3 million shares of insider stock being available. Additionally, investors were extremely anxious about the Latin business environment. What attracted SGI was the Company's business plan, which called for the rapid development of a fiber network in Lima and several opportunities for acquisition and expansion throughout Latin America. This transformation had to be credibly communicated to Wall Street.

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