Savvy Trades and Investments

[linuspop]

I also bought some SCKT on today's selloff.

The brief CC had some positive comments about the rest of the year, plus highlighted some of the NFC potential:

https://docoh.com/transcript/944075/2021Q2/SCKT

The CEO stated:

"The strong demand we saw in Q2 should continue during 2021.

We expect retail to remain strong and hope to see improvements in our Commercial Services, Logistics, and Healthcare segments where we are currently seeing many testing and piloting activities.

We expect these activities to start converting into meaningful revenue moving forward.

We continue to invest in our NFC-centric products which we expect to be a significant revenue driver in 2022 and beyond. Currently, the NFC market is very payment-centric.

For example, the NFC technology is used in Apple Pay and Google Pay. Their technology is easy to use, convenient and secure. Apple, an iOS 15 will enable the consumer to use the same NFC technology to carry identification information such as mobile driver licenses, and you'll be able to carry these as mobile passes in your digital wallets. Visibility will significantly increase the usage of mobile driver licenses and the demand for a reader that can access this information in a nonpayment situation. We believe our S550 and D600 NFC products are the ideal mobile pass readers for this opportunity."

As far as supply chain issues, the CFO seemed to downplay any concerns here:

"Our inventory level increased in Q2 in response to the supply chain tightness. The team is navigating the challenges well through supplier diversification and inventory management, and we feel good about the rest of the year."

They did mention hiring new talent so, hopefully, they keep expenses in check and don't overspend. The rest sounds pretty good. Covid is accelerating contactless payments and, of course, the low float means it could spike higher at any time for a good reason or no reason at all!