Simply Inc. (SIMPQ)

[SpencerTracy]

A reasonable bullish case for IFON:

1. Where many sub-$100 unlocked smartphone companies have gone out of business in the last 2-3 years, IFON has survived.

2. Going forward, the few surviving sub-$100 unlocked smartphone companies are all raising prices (enough is enough for the razor-thin margin), imo!
This is good for IFON.

3. IFON now is a much leaner company (with about 40+ employees) with OpEx of approx. $1.4 million/Q. This number used to be $1.8-$2 million.

4. The two patent suits are no more.

5. They are bringing out smartphones with higher ASP: their sl5200 is their first smartphone with 2MB ram. Higher ASP, higher gross margin kn absolute term.

6. New software Apps coming out in Q2 will increase their net profit.

7. There is no (or significant) dilution from stock options (upto $1.5 PPS, imo)

8. Of course, Mr. Ram, the CEO, owns 34% of the outstanding shares: IFON is his baby!

9. The company is run clean.

10. IFON, with working capital of $10+ million, is significantly undervalued at $0.65 PPS.