SCKT...$1.75...It's made a nice move here lately. A lot of it has to do with the fact that it's become obvious that they aren't going out of business. When the market cap was sub $5M, it was priced for that. Now it's about the future. The Somo side of the business has hidden it a bit because of it's weakness, but the scanners are growing. 16% sequentially in 1rst Q from 4th Q. They will grow over 20% sequentially in 2Q (my inventory numbers that I track are showing April and now May as the best months I've ever seen). The tablet and mPos use by retailers is in it's infancy and will only grow (and will one day be a hot topic among investors trying to find a way to play it). I don't necessarily have a lot of faith in Socket management, but the reality is their software development kit & the partners do all the work and Socket itself just has to deliver scanners on time to distributors. I like to think they can handle that. This stock could potentially be a solid winner over the next 2 years as revenue goes up, profit margins go up, debt gets paid off & expenses stay reasonably flat. There is risk here obviously and it needs to play out more. The reassuring thing (unlike with the Somo and the weakness that resulted from that) is that future growth is mostly a matter of Verifone, NCR, Square, Casio, Shopify, and other partners driving the sales for them and Socket riding the coattails. Based on what I'm seeing in inventory sales finally starting to happen I have to admit I actually am feeling good about this investment and where it can go.
AI
