As always, be sure to read my disclosures / disclaimers below. Cheers!
I’m having a busy week, so just a quick note here.
Wednesday, Smith Micro (SMSI) reported its third great quarter in a row. Revenue and earnings easily beat the Street (and my) expectations. I posted two videos to discuss 1) the results and 2) a preliminary update to my personal model.
Initially, the stock reacted poorly for two reasons. 1) The market opened sharply down on China trade war fear & 2) traders took their profits off the table from the stock’s two-month, 90%+ rise.
But sanity took over as savvy investors scooped up the shares, which rose 16.7% from its low of the day to its high. Personally, I’m happy that this is my largest position. Revenues are ramping and costs are under control, so earnings are finally positive and ramping at a rapid rate.
Technically, the stock recently experienced a golden cross and bounced off of support this morning. Once it pushes through $3.40, there seems to be a clear technical path all the way to $6+ per share.
To be clear, this is not a prediction. However, according to my personal operating model, I see plenty of justification for the shares to move toward (and beyond) those levels.
Thus far, I’ve been right. The shares have risen more than 150% since I’ve gotten involved. Despite that, I believe the company looks better positioned and more undervalued than its been in years.
I’ll likely go LIVE on YouTube tomorrow (Friday) around 12:30PM ET to review the results of the one-on-one discussion I had with management this morning, so follow me there and stay tuned.
- My YouTube Channel
- Individual Stocks Showing Life
- The Quick Investor’s Guide To SMSI
- MoviePass Projected To Burn $600M In 2018
- Sprint Finally Rolling Out SMSI’s Safe & Found Nationwide!
- 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!
- Mark Gomes Research
To get my posts in real-time, just follow/subscribe to my free blog.
If you only want to receive my most critical reports, simply sign up for my MailChimp mailing list instead. If you’re on that list, you will only get key articles and occasional recaps of all the work I’ve recently done.
Disclosures / Disclaimers: This is not a solicitation to buy, sell, or otherwise transact any stock or its derivatives. Nor should it be construed as an endorsement of any particular investment or opinion of the stock’s current or future price. To be clear, I do not encourage or recommend for anyone to follow my lead on this or any other stocks, since I may enter, exit, or reverse a position at any time without notice, regardless of the facts or perceived implications of this article.
I am not a financial advisor. Nor am I providing any recommendations, price targets, or opinions about valuation regarding the companies discussed herein. Any disclosures regarding my holdings are true as of the time this article is written, but subject change without notice. I frequently trade my positions, often on an intraday basis. Thus, it is possible that I might be buying and/or selling the securities mentioned herein and/or its derivative at any time, regardless of (and possibly contrary to) the content of this article.
I undertake no responsibility to update my disclosures and they may therefore be inaccurate thereafter. Likewise, any opinions are as of the date of publication, and are subject to change without notice and may not be updated. I believe that the sources of information I use are accurate but there can be no assurance that they are. All investments carry the risk of loss and the securities mentioned herein may entail a high level of risk. Investors considering an investment should perform their own research and consult with a qualified investment professional.
I wrote this article myself, and it expresses my own opinions. I am receiving no compensation for it, nor do I have a business relationship with any company whose stock is mentioned in this article. The information in this article is for informational purposes only and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
The primary purpose of this blog/forum is to attract new contacts with professional industry expertise to share research and receive feedback (confirmation / refutation) regarding my investment theses.