SMSI has tremendous upside: $5 SHORT TERM TARGET
Although SMSI has moved up sharply from 2011 lows, it still has tremendous short term upside. A move to the $5 range in the short term is likely due to the following:
FORECAST RETURN TO PROFITABILITY IN 2012. Markets are forward looking, investors will bid up the share price in anticipation of profitability.
WHEN SMSI has been profitable in the past, it has traded in the $8 to $15 range.
COST REDUCTIONS: SMSI has dramatically reduced costs, which will improve efficiencies and GROSS MARGINS going forward. SMSI's cost structure is now LOWER THAN EVER.
UPCOMING NEWS RELEASES: New product announcements including Quicklink at World Mobile Congress next week. More commercial deployments of Mobile Network Detector technology over the next few months.
LOW FLOAT: SMSI has only 35 MM shares outstanding and a 31 million float so can move very fast to the upside.
STRONG BALANCE SHEET: SMSI has $1.50 per share working capital and no debt. Back out these current assets, the market is currently valuing SMSI business at only $1.20 per share.
