Value Microcaps Motherboard

[riskanalyst]

SMTX

Looks like you make a good short term trade so far. I'm still long the stock. It's had a nice run. I just find it hard to short considering it's not extremely overvalued. The company did .70 in FY'06 and 1Q'07 did .19. That's still under a 10 PE.

I'm going to have to do a little homework on the warrant situation. I'm not sure if CDP (recent insider seller) is a holder of the warrants. If warrants w/ exercise at 6.90 were exercised and sold this will increase shares outstanding and may drag down the EPS, but considering the company has been able to execute increases in rev on YOY Q's next quarter should not be a hard comp. If the warrants were exercised, it would not be on the next Q considering the price did not breach $6.9 until after the end of quarter. It's a hold for me through the next Q, but I will have to re-evaluate depending on strength of sales.