Today at 12:30PM ET, I hosted a LIVE Stock Market Update, along with an SMSI Earnings Preview, followed by Q&A. You can see it here:
Feb 2, 2010
Smith Micro Software, Inc. (NASDAQ:SMSI $7.75; Buy) Smith Micro is a leading supplier of software solutions that manage adaptive mobile connectivity and personal digital content for enterprise, consumer and operator customers. Its flagship, Quicklink Mobile, manages and optimizes connectivity of mobile devices such as notebooks, netbooks and other emerging form factors onto wireless networks. Consequently, the company is extremely well positioned for the huge ramp of mobile devices that is projected to drive 40% CAGR in the wireless PC modem market. Smith Micro services seven of the top 10 north American carriers and two of the top three PC OEMs. With limited competition (Smith Micro acquired its closest competitor), attractive financials and a reasonable valuation (less than 10 times 2011 EPS), Smith Micro is an attractive play on the growth in mobile devices. We see upside to the $13-16 level and initiate coverage with a Buy rating.
You have to adjust for a 1:4 reverse split, but once you do, you can see that SMSI went from $31 to $68 in less than a year on his watch (after having already gone from $14.56 to $31 before he initiated coverage).
I received an invite to download an Internet of Things report. The invite read…
Security & Connectivity in the Future of the Internet of Things
The Internet of Things is here. Are you ready (and secure)? Ten years from now, it will be hard for us to remember a world where everything wasn’t connected to the internet in a way or another. Even today, we don’t really care to know which technology will be used; things will be simply either connected or will be a problem (and your kids, customers or business partners will chase you until you get everything connected back)
Download Security & Connectivity in the Future of the Internet of Things to learn more.
Finally, I wrote that most people don’t realize that Sprint’s strategy will spur other carriers to partner with software vendors like SMSI.
Sprint is aggressively pricing its phone service to attract new customers (even at a loss) because they know they have unique add-on services like Safe & Found and others. Phone service is not unique, but add-on services can be.
With those services, Sprint will lock customers in for the long-term. For those who don’t already know, U.S. carriers are constantly losing and gaining about 25% of their customers EVERY YEAR. But if you can stop losing customers (via a strategy like Sprint’s) while continuing to gain new ones, your market share starts to take off… and if you look at Sprint’s most recent quarter, that’s exactly what’s starting to happen.
This is great news for SMSI, because Sprint sees that the strategy is working. More importantly, if the competition is sure to see it too, which will force them to start pushing add-on services also, which increases the odds of new carrier wins for SMSI. So, no matter what happens, the success of Sprint’s strategy bodes well for SMSI’s potential going forward.
You can read a recent analysis of Sprint’s pricing strategy here…
- The Quick Investor’s Guide To SMSI
- Tracking Sprint’s Safe & Found Roll-Out On Twitter
- Videocast: AEHR 10-Q, MoviePass Update
- Does SMSI Stand For “Smart Money Speeding In”?
- MoviePass Projected To Burn $600M In 2018
- Sprint Finally Rolling Out SMSI’s Safe & Found Nationwide!
- AEHR Grows 175% — Beats On The Top & Bottom Line (Buying More)
- SMSI 10-Q Released — Strategies For Trading The Stock
- Lose 33% In 9 Months To Make 1,000% In 15?
- GAIA vs. MoviePass: CAC Shows Which One Is A True Mini-NFLX
- Buying SMSI — Today Is The Day I’ve Been Waiting For!
- SMSI: Riding A New Trend & Making Its Latest Comeback
- Mark Gomes Research
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