NEW YORK (TheStreet) -- Shares of SGOCO Group Ltd. (SGOC) are climbing higher by 82.72% to $2.96 in mid-morning trading on Thursday, after the company announced it launched a new online sales platform on JD.com (JD) , to help accelerate its delivery of high quality products and services.
The China-based company, which is focused on product design, distribution and brand development in the country's flat-panel display market, said it has taken a "significant step" towards developing e-commerce through the deal and driving new growth opportunities, while expanding its customer base.
"By signing the new distribution agreement, SGOCO agrees to provide the best-priced, exclusive and competitive products to JD.com for online direct sales," the company said.
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Separately, TheStreet Ratings team rates SGOCO GROUP LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SGOCO GROUP LTD (SGOC) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and poor profit margins."