Value Microcaps Motherboard

[SkepticalOptimist]

SMID, KIK - this is currently my biggest holding by a wide margin. Have you ever looked at the numbers in much detail? I think that the royalty stream alone is worth the total value of the Company (~$1.7M per year at a 38% tax rate and 12% discount rate is over $1.85 per share).

Based on commentary in the Q, I'm expecting $6.8 to $7.0 million of revenue in 4Q09 vs. $5.2 million in 4Q09. FY10 EPS should be close to $.50 ($.22 royalties vs. $.28 operations).

I don't know why the Smith family doesn't pursue one of these options:
1) Sell the Company to someone larger who could exploit the patents better;
2) Find a fund to executive a Leveraged Management Buyout and take private; or
3) Agressively buy back shares at these undervalued levels.

Just my two cents. Appreciate any additional thoughts. Good luck to all.