Traderfan....SCKT...we should know the future of this stock by mid-April. That's when the CEO will go to Japan again. If the next 27K stores are implemented with the bread company using a barcode scanner, then Socket will succeed even without the Somo. (FYI: Yamazaki and Fujitsu are implementing an inventory software system at all 108K locations for Yamazaki that provides real time sales data so then all the bakery plants can do "on demand" daily production levels for bread, eliminating waste and shortage. The barcode scanners are not needed in the 70K kiosks---the tablet with pictures is enough to deal with the limited selection. The first 3400 convenience stores will be done in March with the Socket scanners). Yamazaki has publicly stated that they intend to implement the whole system by September 2015, so even if the 27K scanners are spread out over 16 months, it's enough to push revenue in the $6M range soon. If it's a shorter time frame, even better.
I don't know what 1rst Q will do right now. If they get the Japan order started in 2nd Q onward, add in another large order (already has been submitted to Socket from what I hear for delivery that quarter) with the new OEM buyer of Somo guts who just got FDA approval, the van lines finally starts buying (whether it happens before May 1 or spread out over 2014, it's still 6000+ scanners and is 100% certain), plus the expected increase in day-to-day sales which will happen at some solid level, I can see them at $6M+ from 2nd Q on. There are "supposed" to be other large deals they won't discuss, but I take that as b.s. as I don't necessarily trust them.
If they don't get the Japanese deal then they will continue to survive, but the rocket ship sputters rather than takes off. My opinion is this: If they don't get the balance of the Japanese deal,then try and get your $$ back and move on. If they do, then buy everything your stomach can handle. By the time the Japanese deal ends in 2015, the POS market will have erupted big enough that there will be sales to replace it.
The CFO tells me they don't know anything about the next 27K stores for certain or when and will find out in April. However, they just hired a Director of Communications Management (they advertised for minimum of 8 years experience) to not just communicate, but to run a team under him going forward. That's a big salary for a guy like this for a company tight on money. I know they are going to start presenting through a new IR firm at conferences to high-net worth investors later this spring. If they can get the price up, they already intend to do a secondary in the $2.50-$3 range to raise money as part of their plans on how to get back to the Nasdaq (they need $5M in shareholder equity before Dec 2014 to have it audited for next spring's application). All of this makes me believe they are pretty confident in getting the balance of that contract.
April will decide.
AI
