Our Stock of the Week is Smith Micro Software (SMSI). SMSI provides software for mobile devices. Its SafePath product provides location tracking for families, parental control, car trackers, and elder, pet and child tracking. Its CommSuite product converts voicemail to text. It has made some acquisitions and has a strong pipeline of products.
In the first two quarters of 2019, revenues are up around 55% and the company easily exceeded expectations. The company is expected to go from a loss of one cent last year to eps of $0.23 this year and $0.31 in 2020.
SMSI’s biggest customer is Sprint which accounted for 81% of its 2018 revenue. The company states that its outlook for the rest of the year is ‘very strong’
Technically this is a very attractive chart as the trading range has narrowed as the stock knocks on the door of breaking to a new high. $6.45 would be a new closing high for the stock and would likely trigger some breakout buyers.
As always we would not chase the stock at the open on Monday but would look to add to our position on either a light volume pullback or a strong close on increased volume.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. ("SAMI"), directly or indirectly, controlled investment and/or trading accounts containing positions in SMSI. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.