SCKT: Forbes Article: Mobile POS Will Surpass $2 Billion in 2013, iPad as Cash Register
Excerpts from Aug 2nd article: "The Mobile POS market will surpass $2 Billion in hardware/software sales in North America this year.
Clarification: This data is not consumer point of sales transaction value, but sales of POS equipment hardware and software.
Overall, mobile in retail is now a $5.7 Billion business worldwide and continues to grow rapidly. It is the single fastest moving trend in retail since Internet was added to the stores, according to IHL Group."
Socket doesn't need to become highly successful in this emerging market for shareholders to be rewarded. Who we kidding, even I will admit that I'm not sure management knows what the word "successful" even means anymore. The just need to be marginal at best for the stock to do well. Seriously. Right now the mobile industry is just starting (probably the 2nd inning of a double header) and Socket did $4.4M last quarter. If they grow the 7 series and Somo business just 20% from here (from $4.4M to $5.3M. Scanners have grown 80% from 4th Q last year already), and they get the 8 series scanners going to the tune of $1M/qtr (at the Shareholder Meeting they thought this product may be their #1 seller in the company), then at 41% profit margin + allow expenses to only go up a little (to say $1.85M/qtr) and that's $700K+ in net income. Divide that by outstanding shares and the stock price is a heck of a lot higher than it is today (by many multiples).
What if Socket was highly successful in this emerging market??? Remember, this is still Socket Mobile. Let's look at the other end of the spectrum. Worst case scenario is they are marginal at best and shareholders (at least ones at the current price vs real long term holders) will be rewarded nicely going forward. The 8 series scanner, the continuing addition of new partners for the 7 series and Somo, and low expenses PLUS some more time to let it play out is all that's needed
