Replies to post #22886 on Savvy Trades and Investments

[curlews]

SCKT - I listened to the CC, and there was no disastrous guidance. They expect growth to continue. The basic point of sale business grew 10% in Q2. But they are seeing increasing interest from larger companies for larger deployments beyond that point of sale business. They expect second half to be strong, with Sept and October the strongest months. They started shipping one new product in Q2, and will begin with 2 more new products this quarter, plus near-field communications products early next year. They said the underlying business is strong, and new applications are still being written that will call for their products.

[nelson1234]

SCKT....I disagree. I think the quarter was stunningly poor....bad revenue-wise, but worse on what hit the bottom line. I mean $1.1 million of the revenue was the HUGE one time SOMO order which is now finished....and I think since that was the last batch, margins should have been relatively decent on that part of sales.

Maybe I'm confusing things, but isnt this one of the two seasonally stronger quarters, with December and March being the weak ones? Then the way I see it, how did they only match the December and March quarter's revenues (all were boosted in some amount by the last of the Somo orders)? And the margins ain't great.

Now, one bad quarter doesnt mean SCKT's not a good stock to buy....so long as you believe this quarter is a one off bad quarter, and/or that the company should show strong growth going forward from different initiatives.

But, I dont agree with the interpretation of others on the board that the quarter was decent.

And, btw, imo, the reason why SCKT was trading above $3.60 in the first place was because traders were buying thinking that with the positives of Seasonality and the One Time Somo Boost and the crazy up moves by other low float momo stocks, the expected huge eps would send SCKT flying. But there was no huge eps. Therefore, imo, with the bad quarter, I'd value SCKT at something under $3.50.

Just want to add, I did listen to the CC.

best.

[researcher59]

SCKT EPS of $0.07 was well short of my expectations. I was hoping for $0.10+. SOMO accounted for over 20% of revenues and that's over now, except for parts. I think EPS could be down sequentially in Q3.

SCKT is still a long term growth story and I'd consider getting back in at lower prices, but bailed out today at around $3.10 average. I think the stock will trade flat to lower in the coming months.