Langlui's Big Board and Options Plays

[jaybird249]

SMTX:NASDAQ 3 Forward PE Ratio
SMTX:NASDAQ ($2.80) announced $.14 EPS in Q1 2010. The CEO said Q2 sales will ramp up further, IMPLYING POTENTIAL $.20 EPS.
SMTX HAS THE POTENTIAL TO EARN $.80 - $1.00 FOR ALL 2010.
SMTX trades at a P/S ratio of 0.20 compared to the Industry average of 0.63. If SMTX traded at even HALF the sector average it would be $5.

The EMS sector is BOOMING driven by computer upgrades induced by Windows 7. IEC, CLS, SANM have posted best results in years, and ahve risen 500%. JBL just had a blowout quarter and forecasts sales will continue accelerating:
http://finance.yahoo.com/news/Jabil-Resu...

The SMTX CEO, John Caldwell, is a corporate turnaround legend. He turned computer company GEAC computer around, it rose from $1 to $11 and was bought out.

The 2 most successful U.S. hedge funds- Bain Capital and Renaissance Capital, own SMTX. Renaissance has an army of engineers and MBA's scouring for undervalued stocks.

SMTX has slashed costs to the bone by closing its Boston plant. They will now be able to grow revenues and more importantly, MARGINS, with the cheap labor pool in the China and Mexico. I expect when SMTX hits $70 MM sales again it will have MUCH higher margins and could earn $.30 per share.

SMTX has a tightly held 12 Million float. It can move very fast, in 2005 went from $1 to over $3.50 in a few weeks. It was $8 in 2006.

In short, SMTX has all the ingredients to go much higher in a very short time frame.

HIGHLIGHTS:

- Profitable
- 12 MM share float
- $340 MM market cap
- $250 MM + revenues
- Last CC: Healthy increase in backlog. Customers, new and old, expected to ramp up production in 2010.
- Current quarter: Revenues and net income will be go up this quarter. Profits should approach $.20 per share.
- Traded at $8+ two years ag.o
- Major players in sector (FLEX, JBL, SANM) have gained up to 500% in 2009 while SMTX is still under the radar.
- Frequently mentioned as acquisition candidate because of heavy industry consolidation.
- Company hiring at all worldwide locations due to ramp up in order and backlog growth.