Daily Stock Essay: Superior Group

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. 


A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the sixth of seven consumer cyclical sector stocks poised to join my Volio folio this week. This could be my thirty-ninth pick for Volio!

That consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

My subject today is an apparel manufacturing company named, Superior Group Of Companies Inc Its trading ticker symbol is SGC. This is my fourth report on Superior Group Of Companies Inc. (SGC). It was previously reviewed for Volio in September, January, and most recently April 15th.

Superior Group Of Companies Inc is engaged in designing, manufacturing, and distribution of uniforms to major domestic retailers, foodservice chains, transportation, and other service industries.

It provides customer-specific uniform eStores, custom Image apparel, corporate identity apparel, career apparel, and accessories including remote staffing solution and call center operations for the medical and health fields also for industrial, commercial, and leisure.

The operating business segments are Uniforms and Related Product, Remote Staffing Solutions, and Promotional Products. The company markets its products under the brand names of Fashion Seal Healthcare, HPI Direct, Superior I.D., and UniVogue. Most of its revenue comes from the Uniforms business.

The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018.

Superior Group of Companies, Inc. was founded in 1920 and is headquartered in Seminole, Florida.

I use three key data points to gauge dividend equities or funds like Superior Group Of Companies Inc. (SGC):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money.

SGC Price

Superior's price per share closed at $9.55 Friday. A year ago their price was $16.50, also. Price fell by $6.95 or 42% last year.

Assuming Superior's stock trades in the range of $5 to $12 this next year, its recent $9.55 price might rise by $1.45 to reach $11.00 by May 26, 2021.

SGC Dividends

Superior's most recently declared quarterly dividend was $0.10 paid February 26th That $0.10 Q dividend equates to $040 annually and yields 4.19% at Friday's $9.55 share price.

SGC Gains?

Adding the $0.40 annual estimated dividend to my $1.45 optimistic estimate of Superior's price upside shows a $1.85 potential gross gain, per share, to be reduced by any costs to trade those shares.

Put little over $1,000.00today in Superior Group Of Companies Inc. shares at their $9.55 price, buys 105 shares of SGC stock.

A $10 broker fee paid half at purchase and half at sale could cost about $0.10 per share.

Subtract that $0.10brokerage cost from my estimated $1.85 gross gain per share results in a net gain of $1.75 X 105 shares = $183.75 for an 18.3% net gain on a $1,002.75 investment.

Superior Group Of Companies Inc. (SGC) shows a possible 18.3% net gain including a 4.19% dividend yield. It could be more, it could be less.

The above speculation is based on past performance and supposition. Only time and money invested will tell if Superior Group Of Companies Inc (SGC) is worth it.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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