Replies to post #20112 on Savvy Trades and Investments

[Trent Blair]

SCKT They said on the conference call they'll be able to uplist to Nasdaq this quarter. Said it'll probably be June before it can happen due to audits and responses from Nasdaq.

[SSKILLZ1]

SCKT

Quarter was about what I expected. .08 right within the range of what I said it would be. I expect next quarter will be real good as they finish the somo order (Expecting .12-.15), but then expect sequential declines in q3 and q4 because of the lack of Somo on both the revenues and earnings front. Furthermore q4 will have a tough comp (Because some of q3 revs last year got pushed into q4). Now overall business is growing really solidly that makes up 80% of it's business or so this quarter and will obviously be a substancially higher % as they faze out somo.

They will be apply to Nasdaq soon as they meet the requirement so that is a plus, and they won't be paying taxes anytime soon for years to come so also another positive.

Operating expense look like they will be tracking a bit higher then I expected overall, so that is a bit of a negative, although this quarter was about 100k higher due to the audit which that expense primarily hit q1 results.

Overall SCKT is undervalued, but it is also important to recognize the facts, tough comps are a coming because the lack of somo, so starting in q4 you will see that, plus the other factor that some of q3 revs was pushed into q4 last year.

I continue to always say what Is the true earnings power of this company right now when you eliminate somo, and I come to conclusion that they are gonna earning for the next year ignoring some after q2, probably in the .30-.40 range (Before this quarter my answer to that was .40-.50). Pop a 12 pe on it, and I see a $4-4.50 (I used to see it as a $5-6 stock long-term) stock Now two things that changed my outlook negatively this quarter, (1) Share count is up about 10% over q4 levels, and Operating Expense look to be coming in at about 500k higher annually then I expected they would be going foward. All is all I'm fine with my sale maybe it runs higher to say $4 and it certainly could do that, but I'm glad I didn't hold into earnings as a whole I came out a bit more negative on SCKT then when I started hence my buy point now would have to be under $3 at this point, not that I expect it to get there though. I have no position in SCKT, but my take FWIW. All is just my opinion, and I could always be wrong though.