I found a stock that appears to be undervalued -- SMTX. BigCharts.com is reporting a P/E of 0.9, and the company just reported a profit today. I bought a little bit of it for $1.09. Do you think this will go higher near-term?
Thanks,
Jeff
nice call jeff (applause)
up 30 cents pre-market today
Do you think this stock will go back into the 2's anytime soon, or will it go lower? I have a stop-loss order in at $1.70. Do you think I set that too high? The reason I set it there is kind of technical. The stock shot up to 1.90 shortly after market open, then pulled back and stopped at 1.74 twice. Then the next leg started and went up to 2.20. It has since pulled back with several prints at 1.85, but never any lower. So it seems to be finding support at 1.85, which if it breaks down, it will go back to test 1.74. If it then breaks that, I'd be out at 1.70.
Please correct me if I am wrong about any of this analysis.
Thanks!
Jeff
hey jeff.... maybe i will walk over and ask them? haha
i live 10 minutes away
SMTC Corp
635 Hood Road
Markham, ON L3R 4N6
i am in toronto
just make sure not to lose your profits.
OK, I'm out at $1.79. Looks like the stock is experiencing profit-taking, and I predict it will continue tomorrow before it sees new highs. Just using David's strategy when he sold BCON the first time. He could have held longer, but didn't want to risk the profits he'd already made. I might also pick this stock up again later.
Is it usually true that when a stock jumps up one day on high volume after trading for a period of time with lackluster volume, it will continue the momentum into the next trading day? Look at the chart of SMTX, for example. The stock barely had any volume the past year, and Tuesday it jumped up on 100x average volume. It then went on to reach another 80% gain the following day. Do stocks usually behave like this? Is it always a good buy if I see a stock up on unusually high volume?
With that in mind, what do you think SMTX will do next week? New highs or settle back down some more? I would like to get back in again if the momo is to continue upward.
Thanks!
Jeff
Stock went up 6% yesterday. I'm still interested in this company. What are your opinions on its current fundamentals, growth, etc.? Do you all think this would be a good investment for longer-term at these levels?
Thanks!
Jeff
Another BREAKOUT day !
jeff46: Good pick! ;) [applaud]
Another nice call Jeff.
If I would have seen this earlier,I would have bought.
Applaud!!! Good work........ ;)
Is it still a BUY ?
Who is in it ??
Made 52 week high on HEAVY volume !
Any target price ?
I'm in. Up 13% thus far. I'd say Monday it should begin to take off 8)
Jeff,
That was a great find (and excellent timing BTW) on SMTX.
You get a full-fledged-frothing-rabid "applause" on your pick.
I'm inspired to figure out an algorithm that can spot the short term swings of highly volatile advancing stocks such as SMTX. Nothing I had in my book of TA was able to precisely target the bottoms and the tops of this issue. I made 38% on it but let go too quickly Friday.
I'm thinking that there will surface a correlation analysis that considers the float and shares outstanding of a stock --- my guess is that an indicator of multiplicitous indicators that factor the float will get the nut. Anyway, you made a good call, and I hope you will keep up the good work!
Regards, Rabidmonk ®©
I'm curious too. Look at BSM! Of course, that has a lot to do with huge news.
Hi, Jeff:
Nice oservations about the momentum play.
I used to be a long term investor. I usually hold stock for at least one year.
But I started to do some research on momentum play recently and found this website.
Some observations:
1. If stock jumped big and break out the resistance after a long flat base (narrowtrading range - within 10%), it usually will continue its run;
2. If the big run is due to the company's good earnings, the chance of continue run is even bigger.
3. If the stock has been slow moving up with 40% or more gain from its low,
then follwed by a big jump and break out the resistance, the chance of fake break-out is quite big.
I have already got more than 2 years of big run data (top 100 gainers each day for the last two years on both NASDAQ and NYSE markets) and will do some research and then may develop some trading plan.
Actually I did some research on big drop. If a stock droped 50% or more in one day (normally gap down), then wait until it dropped 10% more to take a position.
I studied all such cases for the last two years, 85% will see at least 35% gain within one month and 98% will see at least 35% gain within 6 months.
I have the complete data to support it.
Seems SMTX is getting weak now. Probably it is time to sell it.
Thanks,
John
May be worth another look, earnings on the 14th I believe and any sort of volume seems to be pushing the price up strongly.
-rcr-
The stock that is out front after day 3,in the Stock Picking Contest. :D
Picked by....... actrader......Total Gain...20.87% ;D
This little baby is also up in the...After Hours (RT-ECN): 3.69 0.342 (10.22%) ;)
You go actrader !!!!! Applaud...... ;)
Support @ $2.85...2.67...2.44
Resistance @ $3.50
MACD is Bullish
Stochastic is Bearish
Recent CandleStick Analysis
Bearish.............but never mind that it continued on it's way up
Nov-04-2005 Dragon Fly DOJI
Nov-03-2005 Bullish Harami
Technicals
Last Price Quote is:
25.48%above 13-day EMA
39.70%above 50-day EMA
RS Rating: 99
Fundamentals
Earnings Expected on Nov 14
Key Data:
Market Cap (M): $25.40
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: N/A
Last Analyst Rating: LT Neutral
SMTX is now fairly valued at $3. Overraction caused major dip. Will bounce soon once results are digested.
SMTC Reports Third Quarter Results
Monday November 14, 8:35 am ET
Reports Consecutive Growth in Revenue and Profitability
Nasdaq: SMTX Toronto Stock Exchange: SMX
TORONTO, Nov. 14 /PRNewswire-FirstCall/ - SMTC Corporation(1) (Nasdaq: SMTX, TSE: SMX), a global electronics manufacturing services provider, today reported revenue of $64.6 million and net income of $0.8 million, or $0.05 per share, for the third quarter ended October 2, 2005. This compares with revenue of $57.0 million and a net income of $0.3 million, or $0.02 per share, for the previous quarter and revenue of $60.8 million and net income of $2.9 million, or $0.20 per share, for the quarter ended October 3, 2004. Net earnings for the third quarter of 2004 included a net recovery of restructuring charges of $2.5 million ($1.8 million of the net recovery is included in cost of sales), or $0.02 per share. Revenue increased quarter over quarter by 13%, or approximately $7.6 million and increased 6% or $3.8 million from the same period last year. Net income more than doubled from the previous quarter.
Gross profit for the third quarter of 2005 was $5.5 million, or 8.5% of revenue, compared with $4.8 million, or 8.4% of revenue, for the previous quarter and $7.3 million, or 12.1% of revenue, for the third quarter of 2004. Gross profit for the third quarter of 2004 includes a recovery of a previously recorded restructuring charge of $1.8 million, or 3% of revenue.
The Company generated cash from operations of $1.8 million during the third quarter of 2005 compared to $3.8 million and $4.0 million, respectively, during the second quarter of 2005 and the third quarter of 2004. Cash generated during the third quarter of 2005 was used to reduce long-term debt and capital lease obligations by $1.7 million and invest $0.1 million in capital assets. Amounts outstanding under the revolving credit facility at October 2, 2005 were $8.1 million compared with $8.4 million at July 3, 2005.
"Once again, this was a quarter of significant financial improvement - sustaining profitability, sequential growth in revenue, cash generation, improved working capital and further debt reduction," said Jane Todd, Senior Vice President and Chief Financial Officer. "Our goals are to maintain profitability and further strengthen our balance sheet."
"Our third quarter results reflect continuing progress in restoring satisfactory financial performance and value creation," stated John Caldwell, President and Chief Executive Officer. "This was the third consecutive quarter we have reported growth in revenue from the previous quarter. Also, this was the first quarter in a number of years that we have reported growth in revenue as compared to the same period last year. Our revenue growth in the third quarter was enhanced by stronger than anticipated seasonality from certain customers. We maintain our guidance that we anticipate revenue and earnings for the second half of the year will be stronger than the first six months. While we expect revenue in the fourth quarter to be lower than the third quarter because of customer seasonality and the effect of certain customer programs approaching end of life, we also expect to remain profitable. Although we anticipate incurring a loss for the full year due to poor results in the first quarter, we have made measurable progress in the ensuing quarters in returning SMTC to profitability and revenue growth."
-------------------------------------------------------------------------
(1) Expressed in U.S. dollars
-------------------------------------------------------------------------
About the Company: SMTC Corporation is a global provider of advanced electronic manufacturing services. The Company's electronics manufacturing, technology and design centers are located in Appleton, Wisconsin; Boston, Massachusetts; San Jose, California; Toronto, Canada; and Chihuahua, Mexico with a third party facility in Chang An, China. SMTC offers technology companies and electronics OEMs a full range of value-added services. SMTC supports the needs of a growing, diversified OEM customer base primarily within the industrial, networking, communications and computing markets. SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX and on The Toronto Stock Exchange under the symbol SMX. Visit SMTC's web site
SMTX traded at $2.18 after hours (after a bullish CC). Should bounce tomorrow. Any guesses how much of a bounce we should expect tomorrow?
Moving up today, last 3 quarters profitable. Should double from here.
$1.60
Looks good.
Any more info?
>:D
Thanks,Yukii!
i might sell some of IPIX tomorrow to get a position in SMTX.
Are`you in ?
Thx, got some:)
Cheers
Press Release Source: SMTC Corporation
SMTC Selected as Telco Systems' Manufacturing Partner
Tuesday February 7, 3:52 pm ET
TORONTO, Feb. 7 /PRNewswire-FirstCall/ - SMTC Corporation (NASDAQ: SMTX/TSX:SMX), a premier mid-tier provider of end-to-end electronics manufacturing services (EMS), today announced it has entered into a new customer relationship with Telco Systems, a wholly owned subsidiary of BATM Advanced Communications Ltd. (LSE: BVC - News), a provider of carrier-class transport and access solutions for public and private IP and TDM networks.
The relationship involves a broad range of manufacturing services spanning multiple sites. SMTC is confident that its distinctive approach to building contract manufacturing partnerships will contribute to the success of this collaboration, and will enhance Telco Systems' strategy of offering high quality leading edge technology.
Telco Systems selected SMTC as a manufacturing partner for printed circuit board assembly (PCBA) and full chassis fabrication, integration and testing. Production was introduced in Q4 2005 with ramp to volume activities continuing through Q1 2006. SMTC is building Telco Systems' PCBA in its facility in Toronto, Canada with chassis fabrication, PCBA integration, final test, and configuration supported through its Enclosure facility in Boston, Massachusetts.
"We have been pleased with SMTC's leadership as they transitioned our initial programs to volume production quickly and painlessly while delivering high quality, competitive pricing, and flexibility that Telco Systems requires from its key suppliers", commented Bob Resinger, Chief Operating Officer of Telco Systems. "We look forward to a long term and expanded partnership as the relationship evolves."
"We are delighted to be partnering with Telco Systems, a leading telecommunications company, and to be an integral participant in it achieving its operational and financial goals," said John Caldwell, SMTC President and CEO. "SMTC's partnership approach involves gaining a thorough understanding of Telco Systems' strategy; enhancing their competitive edge through lower costs, high quality, and faster time to market; and driving improved performance. As part of our commitment, we will work closely with Telco Systems to identify further ways to add value and expand the outsourcing services beyond the scope of the initial phases."
"SMTC maintains a long history of assisting telecom customers in achieving their business goals. This agreement with Telco Systems underscores SMTC's ability to provide leading OEMs with a unique outsourcing solution", commented Steve Hoffrogge, SMTC Senior Vice President of Business Development. "Our breadth of vertically integrated services, professionalism, lean manufacturing methodologies and our people differentiate us from other mid-tier EMS providers."
About Telco Systems:
Based in Foxboro, Massachusetts, Telco Systems is a leading provider of carrier-class transport and access solutions for IP and TDM networks for carrier, service provider and enterprise markets. Its suite of products includes solutions for Metro Ethernet Access Rings, residential and enterprise VoIP, FTTx, SONET, WiFi and T1 backhaul.
Founded in 1972, Telco Systems' focus is to maximize the power of their customers' networks by integrating transport, access and packet technologies onto industry-leading platforms that meet today and tomorrow's network demands.
Telco Systems is a wholly owned subsidiary of BATM Advanced Communications (London stock exchange ticker symbol: BVC). For more information, please visit Telco Systems' web site at http://www.telco.com.
About SMTC Corporation:
SMTC Corporation, founded in 1985, is a mid-tier provider of end-to-end electronics manufacturing services including PCBA production, enclosure fabrication and systems integration & test. SMTC facilities span a broad footprint in the United States, Canada, Mexico, and China, employing 1300 staff members.
SMTC services extend the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers (OEMs) and technology companies within a broad range of industries.
SMTC is a public company incorporated in Delaware with its shares traded on the Nasdaq National Market System under the symbol SMTX and on the Toronto Stock Exchange under the symbol SMX. For further information on SMTC Corporation, please visit our website at www.smtc.com.
Note for Investors: The statements contained in this release that are not purely historical are forward-looking statements which involve risk and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking terminology such as "believes", "expect", "may", "should", "would", "will", "intends", "plans", "estimates", "anticipates", and similar words, and include, but are not limited to, statements regarding the expectations, intentions or strategies of SMTC Corporation. For these statements, we claim the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995. Risks and uncertainties that may cause future results to differ from forward-looking statements include the challenges of managing quickly expanding operations and integrating acquired companies, fluctuations in demand for customers' products and changes in customers' product sources, competition in the EMS industry, component shortages, and the others discussed in the Company's most recent filings with securities regulators in the United States and Canada. The forward-looking statements contained in this release are made as of the date hereof and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements. Unless otherwise stated, all revenues are expressed in U.S. dollars.
--------------------------------------------------------------------------------
Source: SMTC Corporation
Back above the 200-dma.
Technicals
13-day EMA Cross Above 50-day EMA
Close Above the 50-day EMA
Percentage Gainer
Last Price Quote is:
21.93%above 13-day EMA
21.99%above 50-day EMA
RS Rating: 5
Fundamentals
Key Data:
Market Cap (M): $17.60
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: N/A
Last Analyst Rating: LT Neutral
:) I hope this continues, I jumped in 10 days ago in early anticipation of the earnings, which is posted for March 8... I feel that this run is do to the rescent PR and we could see it down again before earnings, hopefully not below the 1.60 support... thoughts? I may sell half here. The volume has been so flat the life today was nice to see.
Thoughts from more experienced folks?? Cheers Joe
I was in yesterday @2.1. Today we had a pull back. But I believe this time it will not drop to beblow 1.6. Actually my target is at least $4.
Reason:
Fundamentals are getting better.
low float
Technically, if you look at the monthly chart, this is the first time the fast MA is crossing up slow MA in years! ADX is moving up and +DI is above -DI, volume is picking up also. I know Monthly chart(tech indicators) are not as sensitive as short term indicators, but they are more effective, all of the long term bullish stocks have to have MAs cross up first.
Maybe this is the time for SMTX to turn around and the golden oppotunity to get in for long term big money?
I will hold and see.
By the way, I see at leat $2.5-$2.75 by the end of the month.
http://bigcharts.marketwatch.com/intchart/frames/frames.asp?symb=&time=&freq=
I think SMTX is ready for another jump ;) :D ;D
I saw this one at $1.7 recently. Lost track of it...darn it!!!
Still holding my SMTX.
TERLISA do you have a target sell price? QYU do you still think we will hit 2.50+ before earnings? The are scheduled to report on March 8. Back in Nov the bubble burst 3 days prior to the earnings announcement.
I am happy with my position hear, already 10%+, but am trying to make a sell strategy for these swing trades? Last week i did well with NWD but still sold 2/3 of position below where it is now. Trying to balance the greed and the reality :) Since that spike up to 2.25 on feb 8 i was bummed that i did not sell some, but this growth looks steady and stronger... what do you see in your ascending triangle? Currently I have my first 1/3 sell order in at 2.30, 2/3 at 2.60 and will see if we hit those. What are your thoughts, would you see those targets as greedy or conservative?
This is a turn-around company with new MGT and some new orders comming in, yet it seems like the big investors are still tepid based on the big sell of in Nov?? Only 11M shares total, if the sellers slow down this could jump fast again... Hope to hear some others opinions before Tuesday... cheers joe
From TA , SMTX looks very good, I believe we can see $2.50 at the end of this month :D
I am still holding my shares.
I added more @ 1.87 and 1.88.
I still belived we will see 2.5+ by the end of the month.
I will decide whether to sell it before the earning. I have a feeling
that this time it is going to be different.
Yooo qyu001 WHat is in your gut thinking that SMTC corp can hold their share price this time around?
I agree that the company looks good, rebounding with strong new MGT, and orders comming in. However it may still be to early to hold 2.50... I am going to swing this one, my goals are to sell in 3 lots, one at 2.30 as the RSI hits mid 70's then when the RSI gets to high 70's or low 80's if it does... the final 3rd i will hold, unless we get above $3 with high RSI... SMTX has a tendency to drop fast... Then hope to buy back under 2.10 at some point in 1st or 2nd qr.
Any folks out there with more TA experience have thoughts on this one?? Cheers joe
W :o :o ps I see there are two forums on SMTX. Since this one started earlier I will continue posting here then. As posted before I got a few on February 8th. It seems like last week volume dried up and on Friday it made a nice move with some good volume.
SMTX is ready to pop IMO. GLTA
Cheers
Needs more volume coming in and would like more positive history. Something to remember when chosing a stock to buy the more volume it has and I always compare daily average to present day but the more volume the easier it is to sell or buy. Have you ever wanted to sell just to watch it set there and nobody buy's it that's why not enough people were interested'
Chart looks good but you also need more volume and more history'
Goodluck trading :)
Superfantabulous earnings out!!!!
SMTC Corp reports Q4 EPS $0.06 ex-items vs -$0.14 ex-items in 4Q04; revs +21% to $58.1 mln
Low floater, should move easily. Patience payed off ;D
Cheers
Definately a nice turnaround company with good potential. Traded at 2.80 in AH
"We anticipate that 2006 will be a year of growth in both revenue and earnings," said CEO John Caldwell. "
Cheers
Applaud stock-kitty
what a go and for hanging in there.
Goodluck trading :)
Hello all, While taking a breather from the GNBT frenzy could folks give me a TA opinion on SMTX? We formed a small pennant last week after the good earnings and it looks to me like we may see another leg up soon. (still a small gap that may need filling in the 2.30's) I am holding for now, curious if anyone sees reason to buy more at this level. Small volume stock... SETRAVIS thoughts?
Cheers Joe
I believe SMTX is grossly undervalued and looks to be beginning a steady uptrend.
Low priced bargain stock may soar.....JMHO of course. ;D
I'm thinking a higher new bottom of $2.75 after it breakouts to test $3.25.
Reported fourth-quarter net earnings of $1.42 million, or 10 cents a share.
Reported $7M in cash flow for the latest quarter with mkt. cap at $28M.
SMTX has only 14 Million shares outstanding,reduced debt from $30 million to $23 million.
Technicals
Last Price Quote is:
7.58%above 13-day EMA
24.93%above 50-day EMA
RS Rating: 97
Fundamentals
Key Data:
Market Cap (M): $27.92
P/E Ratio: NA
PEG Ratio: N/A
Next Earnings: N/A
Last Analyst Rating: LT Neutral
should pop any day from now.pennant almost complete and earnings-day soon.buying today.
up 10% for now.
If we could close over $3 today, next week would be really interesting.
Need more volume though.
Broke resistance with improving volume.
SMTX had a gap up open after previous earnings.The same pattern is highly possible after this q.earnings.Jmo.
doubled my stake.
earnings will be out today.up we go (jump).hopefully.
It seems that he want to go again at 3$.
MARS
One to watch, symmetrical Triangle formation ;)
SMTC Corp 2Q Profit Nearly Quadruples
ASY and SMTX -- both profitable tech companies with extremely low P/E's and a low float.
"SMTX" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock.
Thank You....and good luck with all your trades....make some $$$ ;)
SMTX chart is looking better each day.
http://stockcharts.com/charts/gallery.html?smtx
EXPLOSIVE SUPER LOW FLOATER ABOUT TO BREAKOUT....CHECKOUT THE CHART.....ONCE $1.72 IS GONE BLUE SKIES TO $2.5
- 4Q WILL BE PROFITABLE PER CEO
- CURRENTLY TRADING AT A P/E OF 5 AND 0.1 TIMES SALES
- ONLY 8M SHARE FLOAT
SMTX will likely triple in a quarter or 2. The stock has traded above $8 in 2007.
SMTX's CEO already said that 4Q will be profitable and will return to higher margins after a hick-up in 3Q that caused this unreasonable sell-off.
For 2008 I expect net income of 40 - 60c/share. The company has decreased it's long-term debt in half to little over $20M in just a few months and should be able to be debt free in 2008. This is an amazing accomplishment.
The following was said on SMTX's 3Q earnings release:
"Through continuing focus on debt reduction, the Company generated over $10 million in positive cash flow largely through lowering working capital levels", stated Jane Todd, Senior Vice President Finance and Chief Financial Officer. "Our total debt level at quarter end of $23.1 million is at its lowest in eight years."
"For the fourth quarter, we expect to substantially increase sequential revenue, although we are unlikely to attain the record level in the fourth quarter of 2006. We also expect to return to satisfactory margin and profitability levels", stated John Caldwell.
TARGET: $20++ IN 2009
SMTX will be a huge winner in 2008 and beyond. Read why:
SMTX expects to be debt free by the end of fiscal 2008. This means that in 2009 and beyond SMTX could earn about $1/share net income.
- 4Q and FY 2007 will be profitable per CEO comments during the 3Q 2007 earnings release/CC.
- The company had warned that the past 2Q and 3Q 2007 would be relatively weak. Despite weak 2 Q and 3Q,the company will end 2007 with 28 - 32c/share net income
- The company also said that revenues,margins and net income will return to normal in the current quarter (4Q 2007 to be reported in January). Guidance calls for $70M 4Q revenues and net income of 8 - 12c/share. Not bad for a company with anout $25M market cap with annualized revenues of about $250M.
- SMTX currently pays 35c/share/year in interest. After 2008 SMTX will realize over $1/share net income since the company expects to be debt free by the end of fiscal 2008
SMTX will likely triple in a quarter or 2. The stock has traded above $8 in 2007.
SMTX's CEO already said that 4Q will be profitable and will return to higher margins after a hick-up in 3Q that caused this unreasonable sell-off.
For 2008 I expect net income of 40 - 60c/share. The company has decreased it's long-term debt in half to little over $20M in just a few quarters and expects to be debt free in 2008. This is an amazing accomplishment.
The following was said on SMTX's 3Q earnings release:
"Through continuing focus on debt reduction, the Company generated over $10 million in positive cash flow largely through lowering working capital levels", stated Jane Todd, Senior Vice President Finance and Chief Financial Officer. "Our total debt level at quarter end of $23.1 million is at its lowest in eight years."
"For the fourth quarter, we expect to substantially increase sequential revenue, although we are unlikely to attain the record level in the fourth quarter of 2006. We also expect to return to satisfactory margin and profitability levels", stated John Caldwell, company CEO.
ABOUT SMTX
SCTC Corp. (Nasdaq: SMTX) provides integrated electronics manufacturing services. The company offers various supply chain services, including product design, procurement, prototyping, advanced cable and harness interconnect, high-precision enclosures, printed circuit board assembly, test, final system build, supply chain management, packaging, global distribution, and after sales support.
The company also provides enclosure and precision metal fabrication, cable assembly, interconnect, and engineering design services. SMTC Corporation offers its services to original equipment manufacturers and technology companies primarily in industrial, computing and networking, and communications markets worldwide. The company was founded in 1985 and operates in the United States, Canada, Mexico, and China.
Pangya007, the new thread you created today on this stock pick has been merged with the
existing thread.
"SMTX" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. :( ::)
Thank You....and good luck with all your trades....make some $$$ ;) ;D
There is a report out there that SMTX and SIMC are growing exponentially in China. I can't find the link for it. Can anyone help me find it? TIA
TARGET: $10+ IN 2008....READ WHY BELOW
- PROFITABLE (PER GUIDANCE) 4Q WILL RE REPORTED FEBRUARY
- HUGE GROWTH IN ITS CHINA DIVISION DUE TO THE UPCOMING OLYMPIC GAMES
- SIGNIFICANT EXPANSION IN MEXICO THIS YEAR....EXPANDING PRESENCE IN MEDICAL SECTOR:
http://www.smtc.com/PDF/News%20Releases/011108%20Frost_and_Sullivan_SMTC_Article.pdf (http://www.smtc.com/PDF/News%20Releases/011108%20Frost_and_Sullivan_SMTC_Article.pdf)
- LONG TERM DEBT WILL BE REPAID IN 2008
- RED OAK PARTNERS RECENTLY FILED THAT IT NOW OWNS ALMOST 20% OF THE SHARES AND KEEPS ADDING
- SMTX TRADED ABOVE $8 IN 2008
SMTX HIGHLIGHTS:
- SMTX China Division is growing exponentially and will become the biggest contributor in 2008. SMTX makes circuit boards for some of the largest LCD HDTVs, cell phones, auto makers, and SOLAR PANEL MANUFACTURERS/ASSEMBLERS in China.
- SMTX expects to be debt free by the end of 2008.
- SMTX currently pays 35c/share/year in interest.
- After 2008 SMTX will realize between 80c - $1/share net income.
- For 2008 I expect net income of 40 - 60c/share on revenues of about $260M.
- SMTX currently generates revenues of about $250M/year and has a market cap of only $22M.
- 4Q and FY 2007 will be profitable per CEO comments during the 3Q 2007 earnings release/CC. The analyst covering the stock estimates revenues of $70M and 8c/share net income. SMTX will announce 4Q financial results next month.
- SMTX is currently trading at a P/E of about 7 and a ridiculous 0.1 times sales.
A few months ago the company anticipated and warned about a temporary revenue/earnings decline for 2Q and 3Q 2007. At the time of the warning SMTX was trading near $8/share
During the 3Q earnings/CC the company CEO said that starting with 4Q (this quarter) revenues, margins, and net income will return to normal levels. Even with the weak 2Q and 3Q SMTX will end the year with about 30c.
From SMTX's 3Q earnings release:
"Through continuing focus on debt reduction, the Company generated over $10 million in positive cash...", stated Jane Todd, Senior Vice President Finance and Chief Financial Officer. "Our total debt level at quarter end of $23.1 million is at its lowest in eight years."
"For the fourth quarter, we expect to substantially increase sequential revenue, although we are unlikely to attain the record level in the fourth quarter of 2006. We also expect to return to satisfactory margin and profitability levels", stated John Caldwell, company CEO.
ABOUT SMTX:
SCTC Corp. (Nasdaq: SMTX) provides integrated electronics manufacturing services. The company offers various supply chain services, including product design, procurement, prototyping, advanced cable and harness interconnect, high-precision enclosures, printed circuit board assembly, test, final system build, supply chain management, packaging, global distribution, and after sales support.
The company also provides enclosure and precision metal fabrication, cable assembly, interconnect, and engineering design services. SMTC Corporation offers its services to original equipment manufacturers and technology companies primarily in industrial, computing and networking, and communications markets worldwide. The company was founded in 1985 and operates in the United States, Canada, Mexico, and China.........
Use the Search Please...
"SMTX" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. ;D
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. :( ::)
Thank You....and good luck with all your trades....make some $$$ ;) ;D
chart update
3 MONSTER QUARTERS AHEAD.....HUGE GROWTH IN CHINA.. $300M REVENUES...$35M MARKET CAP..7M SHARE FLOAT..
TARGET: $8+ IN 2009...
SMTX, a Canadian-based manufacturer has guided for a monster 2008. The current market cap is only $34M and the company expects 2008 profitable revenues almost 10 times higher than its tiny market cap.
If the company delivers on its guidance of a strong second quarter ending June 30, and reiterates an even stronger second half of 2008, this stock could fly to $6..$8.
Last summer SMTX rallied to $8+ and today it's much stronger fundamentally with about $10M less in debt, a new China plant and ramping up in the current quarter, an expansion in Mexico, and over 100 costumers in industrial, computing and networking, medical, aerospace, defense, infrastructure, and communications markets worldwide.
SMTX is well diversified with over 50% of its revenues coming from China and Mexico and the balance from the US, Canada, and Europe. This is why the company has guided for 3 blockbuster quarters in a row.
Because SMTX is thinly traded and has a float of only 7M shares it is being manipulated providing an unbelievable opportunity to patient value investors. SMTX is trading at a forward PE of 5 and a P/S of 0.12!!
SMTX has generated over $25M in cash flow in 2007 on an average year. The company has reduced its long-term debt by over 50% in less than 2 years to less than $20M.
Its largest customers, Ingenico and Harris Corp., have won significant contracts in recent months. Ingenico's products will be manufactured in China while Harris' products will be manufactured in Canada and Mexico.
Growth in the second half will accelerate as a result of seasonal strength and continued production increases in China and Mexico.
For 2008 SMTX expects revenues ranging from $270M to $300M and net income from 50 to 70c/share. Each quarter being stronger than the previous one as a result of major contract wins.
**** CEO Caldwell had this to say about the upcoming 2Q and the rest of 2008:
"In the second quarter of 2008, we expect significantly higher sequential revenues and correspondingly improved earnings. We reaffirm our guidance for the full 2008 year with both revenue and earnings growth over 2007 on stronger revenue in the second half of the year."
"We have made considerable progress in successfully qualifying production at our two new strategic locations; China and Mexico."
" The China operations will significantly ramp production in the second quarter while Mexico is expected to increase activity levels in the second half of the year."
During the CC CEO Caldwell noted that revenues in the second half of 2008 will be a record because of several factors: new larger plants, new contracts with several large customers, and higher demand from existing customers due to seasonal effects. Mr. Caldwell also said that 2Q 2008 started with a bang with a record April 2008. 2Q 2008 will be reported next month.
ABOUT SMTX:
SCTC Corp. (Nasdaq: SMTX) provides integrated electronics manufacturing services. The company offers various supply chain services, including product design, procurement, prototyping, advanced cable and harness interconnect, high-precision enclosures, printed circuit board assembly, test, final system build, supply chain management, packaging, global distribution, and after sales support. SMTX was founded in 1985 and operates in the United States, Canada, Mexico, and China
I can't open that chart. Can someone comment of this company's T/A. I don't understand technical analisys. Where and how do you learn T/A? Thank you.
I reaaly like the potential here based of this guy's DD.
Beautiful chart.Looks like a breakout will happen anyday now. Blue skies aboev $2.65 IMO
Do the rumors that Flextronics is looking into buying SMTX have any merit? They are in the same industry after all and SMTX is profitable and growing. Even if SMTX pays one times sales that would be an $8 - $10/share offer IMO
Black Friday June 6, 2008.....SMTX gains 4% on no news...Dow loses 410 points, NASDAQ loses 75 points, and the S&P loses 44 points. This is because SMTX is more undervalued and stronger fundamentally than many stocks.
Looks like big players are starting to notice this under-the-radar gem. Motley Fool's CAPS value investors rate SMTX a perfect 5 stars....their highest ranking. Furthermore, all 37 CAPS having SMTX under their radar rank SMTX "outperform.".........this is a very rare for those familiar with CAPS ratings:
http://caps.fool.com/ticker/SMTX.aspx
By the way, Motley Fool featured SMTX on June 6, 2008:
http://www.fool.com/investing/general/2008/06/06/todays-five-star-movers.aspx
SMTX is starting to rally ahead of earnings. Heavy recent manipulation brought it down all the way to $1.5!!...I believe SMTX will fly after straong earnings. $3.5+ is very possible after earnings
Reminder: Earnings after hours on Tuesday August 5. Keep an eye on this one
Competitors SANM and FLEX recently reported blowout quarters. With a float of only 7M shares and a ridiculous 0.1 times sales, SMTX could double in a hurry. I will be adding more tomorrow because this one always rallies a day or 2 before earnings.
Hey viva, what is your cost base? Just curious
Target: $3+ after earnings November 5
SMTX is expected to report strong results when it releases earnings on November 5, 2009 and will do what competitors JBL, FLEX, and SAMN have done which is to gain over 300% since March. SMTX is still under the radar but it is ready to explode.
This electric contract manufacturer has strong ties with customers worldwide. In its last quarterly report, the company reported that it has not lost any customers only that their customers were working their inventories. Its competitors have recently reported strong earnings results because customers are starting to rebuild inventories.
Jim Cramer is very bullish on the whole sector and gave it a "Strong Buy" rating last month. SMTX has lagged behind because of delisting concerns because it is an under-1 stock. However, the company has recently received an extension by NASDAQ until May 2010.My guess is that SMTX will go well above $2 after its earnings report on November 5, 2009. The stock has already started to trend up.
Despite the very challenging conditions the last few quarters SMTX has remained cash-flow positive and has steadily its long-term debt to about $15M from over $40 million 3 years ago. SMTX through cost cutting and optimization is poised to deliver explosive earnings as the economy recovers. Two years ago it reported over 70c/share net income and the stock flew to $8
SMTX has over $200 MILLION in annual sales and trades at a Price/Sales ratio of 0.06 compared to 0.54 INDUSTRY AVERAGE and has a tiny 6 MM float. 2.5 MM of the 6 MM float is institutional owned, so the "available" float is 3.5 MM.
"SMTX" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders. 8)
All history on a stock pick in 1 thread is awesome. ;)
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock. ;)
Thank You....and good luck with all your trades....make some $$$ ;D
Here is the updated chart look...
Buyout rumors floating around. Someone must know something. SMTX went from trading 10,000 shares a day to over a million shares today???
The contract electronics sector is undergoing major consolidation.
Who would not want to buy a well ran profitable company with shrinking debt and a 80% extra capacity AND trading at 0.1 times sales?? Fair price is around $5 if you ask me...and that would still be considered a steal.
SMTX traded at $8/share 2 years ago when the debt load was twice what it was today and the cost structure 40% higher. SMTX is now lean and mean and ready to rake in some major profits.
The company announced during the last CC that the backlog for this quarter is much stronger than recent past and that it has had some major wins.
GOOD LUCK !!!!
Major competitors FLEX, JBIL, SANM have gained 500% while SMTX has been dormant for a while. SMTX is waking up now. take a look at its chart and do some DD to find out about its strong fundamentals
HIGHLIGHTS:
- Profitable
- 6M share float
- $12M market cap
- $200M+ revenues
- Last CC: Healthy increase in backlog
- 4Q revenues and net income will be go up over 3Q. Profitable again.
- Last CC: Customers, new and old, expected to ramp up production in 2010
- Continues to reduce Long Term Debt every quarter
- Lowered break even point by $10M/quarter during recession
- Traded at $8+ two years ago
- Major players in sector (FLEX, JBL, SANM) have gained up to 500% in 2009 while SMTX is still under the radar
- Frequently mentioned as acquisition candidate because of heavy industry consolidation
- Company starting to hire heavily due to ramp up in order and backlog growth.
Excerpts of the 3Q earnings release:
TORONTO, Nov. 5 /PRNewswire-FirstCall/ - SMTC Corporation (Nasdaq: SMTX, TSE: SMX), a global electronics manufacturing services provider, today reported 2009 third quarter results. Revenue for the quarter increased sequentially by $5.0 million or 13% to $44.2 million.
Net income for the quarter at $0.2 million compares with net loss of $3.4 million in the second quarter of 2009 and net income of $0.1 million for the comparable period last year. Net income includes a $0.3 million net loss from discontinued operations, the result of the closure of the Company's Boston facility in the second quarter of 2009. Consequently, the Company recorded net income from continuing operations of $0.5 million. The second quarter of 2009 was also adversely affected by various write-offs and operational losses associated with the now closed Boston operation, without which the Company posted a modest profit."
"As expected, our third quarter results improved over the second quarter, thought to be the low point of the economic cycle. Earlier in the year, we took aggressive cost reduction actions including the closure of the Boston site to significantly lower our cost structure as we entered the global recession. As evidenced by this quarter's results, we successfully reduced our break-even cost position to remain profitable at a much lower revenue level," stated John Caldwell, President and Chief Executive Officer.
"As stated previously, given the uncertainty in the current economic climate and limited visibility in our customers' end markets, the Company will not be providing specific financial guidance. However, there are some early signs that the economy is showing some modest improvement. We continue to expect volatility quarter to quarter. We expect sequential growth in the fourth quarter through improved demand from certain longstanding customers and modest revenue from new customers that are ramping to full production in 2010. Our focus will continue to be on solid customer service, new customer acquisition, tight cost containment and working capital management," stated Mr. Caldwell.
iamonfire,
Your Post has been merged with current thread on this stock.
You need to follow the forum rules.
http://stockcharts.com/h-sc/ui?s=smtx&p=D&b=5&g=0&id=0
Why is this gaining over 50% this week while the markets are taking all around it??
Odumbahater? LOL...That makes two of us buddy. SMTX is going up because it is extremely undervalued. I expect a strong profitable quarter to be reported soon. My guess is 4 - 6c/share net income. $3+ after earnings is not a pipe dream.
Buy Signals...
At $1.59 coming back down to probably $1.20 after pump-and-dump move up today,
But two buy signals in place too, buy on weakness. ;)
52wk Range: 0.23 - 2.04
Volume: 2,108,138
Avg Vol (3m): 41,262.9
Technicals
Percentage Gainer
Last Price Quote is:
59.81%above 13-day MA
69.42%above 50-day MA
RS Rating: 96
Fundamentals
Earnings Expected on Feb 5
Key Data:
Market Cap (M): $16.58
P/E Ratio: 104.96
PEG Ratio: N/A
Next Earnings: N/A
Last Analyst Rating: LT Neutral
SMTX $1.7..UP 5%...BREAKOUT ALERT...
COULD DOUBLE/TRIPLE AFTER EARNINGS AH TODAY....EXPLOSIVE PROFITABLE LOW FLOATER
DOUBLE-DIGIT NET INCOME IS LIKELY.....
http://stockcharts.com/h-sc/ui?s=smtx&p=D&b=5&g=0&id=0
Major competitors FLEX, JBIL, SANM have gained 500% - 500% since last year. In fact, SANM has gone from $1 to $17 in a year! SMTX needs to gain 300% - 500% to be at par with the sector.
SMTX is trading under 0.1 times sales even with recent gains. The sector averages 07 times sales. Lots of upside here.
The only reason SMTX has not kept up with the sector is because until February there was a potential of NASDAQ delisting for being under $1 for a while. That's not a dark cloud anymore
HIGHLIGHTS:
- Profitable
- 8M share float
- $20M market cap
- $210M+ revenues
- Last CC: Healthy increase in backlog
- Last CC: Revenues and net income will be go up this quarter. Profitable again.
- Last CC: Customers, new and old, expected to ramp up production in 2010
- Continues to reduce Long Term Debt every quarter
- Lowered break even point by $10M/quarter during recession
- Traded at $8+ two years ago
- Major players in sector (FLEX, JBL, SANM) have gained up to 500% in 2009 while SMTX is still under the radar
- Frequently mentioned as acquisition candidate because of heavy industry consolidation
- Company hiring at all worldwide locations due to ramp up in order and backlog growth.
SMTX trades at a Price - Sales ratio of 0.09 compared to the Industry average of 0.63. If SMTX traded at even HALF the sector average it would be $5.
In the last quarter, SMTX earned $.03 from continuing operations. The CEO said Q4 sales will be stronger, and 2010 sales will ramp up further. With the low cost structure, the earnings leverage from higher sales will be enormous.
The EMS sector is BOOMING driven by computer upgrades induced by Windows 7. IEC, CLS, SANM have posted best results in years.
The SMTX CEO, John Caldwell, is a corporate turnaround legend. He turned computer company GEAC computer around, it rose from $1 to $11 and was bought out.
The 2 most successful U.S. hedge funds- Bain Capital and Renaissance Capital, own SMTX. Renaissance has an army of engineers and MBA's scouring for undervalued stocks.
SMTX has slashed costs to the bone by closing its Boston plant. They will now be able to grow revenues and more importantly, MARGINS, with the cheap labor pool in the China and Mexico. I expect when SMTX hits $60 MM/quarter sales again it will have MUCH higher margins and could earn $0.20 per share per quarter!!!!
Do your DD on this one because it is not looking back. SMTX traded at $8 a couple of years ago. Now it has a much lower cost structure and half the long-term debt. Speaking of LT debt, SMTX has lowered it every quarter for the last 18 quarters....even at the height of the current economic meltdown.
SMTX $2.5 ...Up 22c. BREAKOUT ALERT!!!....14c/SH NET INCOME ..EXPECTS SEQUENTIAL GROWTH...TRADING AT 0.15 TIMES SALES ...8M SHARE FLOAT!!!!!
TARGET: $5+ AFTER MONSTER EARNINGS
Great entry point before the next Q earnings rally get started. SMTX is on a path to earn 80c/share+ net income this year due to exploding sales and lean cost structure. SMTX is trading at 0.15 P/S compared to the 0.8 P/S sector average. Investors are starting to discover SMTX...wise investors are loading up now while the MMs attempt to control the pps:
http://stockcharts.com/h-sc/ui?s=smtx&p=D&b=5&g=0&id=0
>>>>> BOTTOM LINE: $33M MARKET CAP WITH PROJECTED $240M REVENUE AND POTENTIALLY OVER $1/SHARE NET INCOME IN 2010 per CC LAST WEEK <<<<
INVESTMENT HIGHLIGHTS:
- Strong electronics contract manufacturer sector expected to grow 10%/year through 2015
- 8M share float
- Strong revenue and net income growth projected
- Per CC last week:...Very Strong Backlog
- Per CC last week:....1Q and rest of 2010 will be stronger
- Per CC last week:....Most customers building inventories
- Per CC last week:...5 news major customers
- Per CC last week:....All customers ramping up and building inventories
- Traded at $8+ two years ago
- Major players in sector (FLEX, JBL, SANM) have gained up to 800% in 2009/2010. SMTX needs to gain an additional 300% to catch up with competitors' valuations.
- Company hiring at all worldwide locations due to ramp up in order and backlog growth.
- Recent performance has caught analysts' interest. When coverage starts I expect to be a BUY to STRONG BUY with a target several times higher than today's ridiculous prices.
- HERE IS THE STRONG EARNINGS REPORT/GUIDANCE RELEASED LAST WEEK.
SMTC Reports Fourth Quarter Sequential Growth
prnewswire
Revenue increased 16%; Earnings from continuing operations up five-fold
TORONTO, March 10 /PRNewswire-FirstCall/ - SMTC Corporation (Nasdaq: SMTX, TSE: SMX), a global electronics manufacturing services provider, today reported 2009 fourth quarter unaudited results. Revenue for the quarter was $51.2 million increasing $7.0 million or 16% sequentially. Net earnings from continuing operations for the quarter of $2.4 million compares with $0.5 million in the third quarter of 2009 and $1.0 million for the comparable period last year. Net earnings after discontinued operations for the quarter of $2.2 million compares with net earnings of $0.2 million in the third quarter of 2009 and a net loss of $0.1 million for the fourth quarter of 2008. The Company produced $55.3 million in revenue in the fourth quarter of 2008, a period largely unaffected by the global recession.
Gross profit for the fourth quarter was $5.9 million or 11.5% of revenue compared with $3.7 million or 8.5% for the previous quarter and $4.8 million or 8.6% for the fourth quarter of 2008.
In spite of continuing North American economic headwinds, SMTC produced strong fourth quarter results with revenue and earnings from continuing operations increasing sequentially by 16% and over 400% respectively above the third quarter of 2009." stated John Caldwell, President and Chief Executive Officer. "Our revenue growth came from seven of our top ten customers together with five new customers at the early stage of ramping production. Our solid earnings performance reflects the effect of previous quarters' expense reduction initiatives and continuing cost containment measures. Unquestionably, 2009 was a difficult year as our customers' end markets were significantly adversely affected by the recession that ultimately impacted our revenue. However, through this period we were able to reduce costs and substantially increase overall profitability and margins."
".. we are experiencing continued strong order flow from longstanding and newer customers together with a strong opening backlog, which should result in continued sequential revenue growth in the first quarter, and continuing strength through the first half of the year." stated Mr. Caldwell.......(READ AGAIN)