3SOF

Is there be a HighTop flag forming? 

Chart is unbelievable!
From 9.01 in mid August to 17.27 for a 91.68% gain in just under two months 

Long and strong

short squeeze will be fun 

awesome 

Smith Micro Shares Jump to Year High
Monday October 30, 2:59 pm ET
Smith Micro Shares Climb to 52-Week High Following Solid Results From Verizon Wireless

NEW YORK (AP) -- Shares of Smith Micro Software Inc. climbed to their highest level in a year Monday, following solid third-quarter results released by Verizon Wireless, which accounts for a big chunk of the company's sales.
Smith Micro develops and markets wireless communication software and services for uses such as roaming between wireless wide area networks and Wi-Fi hot spots, videoconferencing and sending and getting faxes. Earlier on Monday, Verizon Communications Inc. posted third-quarter earnings above Wall Street's expectations, largely due to outstanding results from its wireless business, which it co-owns with Vodafone Group PLC.
Verizon Wireless added 1.9 million customers during the quarter to a total of 56.7 million, and its sales grew 18 percent to $9.87 billion.
Verizon's wireless data revenue tracks closely with Smith Micro's performance, since it accounts for more than 70 percent of Smith Micro's revenue, wrote Rodman & Renshaw analyst Amit Dayal in a note to investors. Monday's results, he added, "give us confidence that the outlook for SMSI remains positive."
Aliso Viejo, Calif.-based Smith Micro's shares rose $1.44, or 8.5 percent, to $18.33 in afternoon trading on the Nasdaq. Earlier in the session, shares traded as high as $18.60, eclipsing a previous 52-week high of $17.48 set Oct. 16. The stock has tripled since the beginning of the year.

Dayal rates Smith Micro "Market Outperform" with a target price of $20.
Reginal King, an analyst with Nollenberger Capital Partners, expects the company to report a solid third quarter on Wednesday.
"Throughout the quarter, several of our sources indicated that demand for the company's music products were particularly strong," the analyst wrote.
Analysts polled by Thoson Financial, on average, expect earnings of 14 cents per share on sales of $13.4 million.

interesting day , earning announcement tomorrow will give us all the details 

Hopefully I've helped you longs today. I've been long this stock for a long time and added alot in Aug. Today, acting like an overweighted long I put a stop in on 1/2 my position at 17.24 never thinking I could get wacked. Well I did! I believe I will hate what I've done and am sure that the market will spank me tomorrow with a strong recovery. For those of you who are long I want you to know each time I left my fundamental view for a technical trade on this stock I have been wrong. You'll see that long ago my targets were up at the 18 to 20 levels and I still think this company has great long term prospects. Tomorrow I'll be the one chasing a new long position.

above estimates 
01-Nov-06 16:39 ET Trader In Play Smith Micro details from ongoing call: (16.07 -0.94) : SMSI falls to around $15 after hrs as call starts. Co touts gross margins of 61%, up from Q2.
01-Nov-06 16:35 ET In Play Smith Micro Software beats by $0.03, beats on revs (16.07 -0.94) : Reports Q3 (Sep) earnings of $0.17 per share, $0.03 better than the Reuters Estimates consensus of $0.14; revenues rose 114.5% year/year to $14.8 mln vs the $13.6 mln consensus.

down minus 12% afterhours 

Smith Micro Software Reports Record Third Quarter Revenue
Wednesday November 1, 4:13 pm ET
Third Quarter Revenue Increased 115% to $14.8 Million; Pro Forma Net Income Increased to a Record $4.3 Million

ALISO VIEJO, Calif., Nov. 1 /PRNewswire-FirstCall/ -- Smith Micro Software, Inc. (Nasdaq: SMSI - News), a developer and marketer of a wide range of software solutions for the wireless market, today reported its 2006 third quarter financial results.

    Third Quarter 2006 Key Financial Results:

    *  Revenue increased to a record $14.8 million, up 18% sequentially and
       115% year-over-year.
    *  Pro Forma Net Income was a record $4.3 million, compared to pro forma
       net income of $2.9 million in the first quarter of 2006, pro forma net
       income of $3.2 million in the second quarter of 2006, and pro forma net
       income of $2.3 million in the third quarter of 2005.
    *  Pro Forma earnings were a record $0.17 per fully diluted share on
       25.8 million shares, compared to pro forma earnings of $0.13 per fully
       diluted share in the second quarter of 2006 and compared to pro forma
       earnings of $0.10 per fully diluted share in the third quarter of 2005.
    *  Pro Forma Gross Profit increased to $9.0 million, up 18.4% sequentially
       and 49.6% over Pro Forma third quarter 2005.
    *  Cash and cash equivalents increased significantly to $34.9 million,
       compared to $21.2 million at year-end in 2005.

    Third Quarter Financial Discussion:

"We are very pleased to report our sixth consecutive quarter of record top line and bottom line results," said William W. Smith, Jr., President and Chief Executive Officer of Smith Micro Software. "Our business continues to prosper across all of our platforms and in our OEM business division we saw a return to a more normalized growth trend for our broadband QuickLink Mobile connectivity product, which helped drive the increase in gross margins for the quarter. We also experienced significant growth with our Music Essential kit, specifically with Verizon Wireless, where we benefited from a strong marketing push and launch of the LG VX8500 Chocolate phone."

Mr. Smith continued, "We launched our QuickLink Music product during the quarter, our new music suite which offers a robust experience allowing wireless carriers the ability to brand their multimedia service offerings from online stores to mobile handsets. It also gives the end users a streamlined installation process, and the seamless operability to integrate music capable phones with a PC. We believe this is a strong launching pad, as we look to expand our wireless carrier customer base with this product in the coming months."

"Our StuffIt Wireless program continues progress on track, with several ongoing prototypes in testing with large handset manufacturers, and a wireless carrier. We see this solution becoming more relevant to the market place as the market continues to evolve every day, with more data moving through the spectrum including music, video, and photos. Specifically, we anticipate video becoming more prominent player as we look to 2007." Mr. Smith continued, "We believe we have positioned the Company very well to benefit from these additional services being offered by the wireless carriers."

Mr. Smith concluded, "In conclusion we remain optimistic about our business outlook, we expect to see a continuation of growth, and believe our recent music success can continue to grow with the launch of QuickLink Music. We believe the company is positioned well as we strive to be a leader in the wireless software space."

Smith Micro reported record net revenue of $14.8 million for the third quarter ended September 30, 2006, an 18% increase over revenue of $12.5 million in the second quarter of 2006 and an increase of 115% when compared to the $6.9 million recorded in the third quarter of 2005.

Pro forma net income (which excludes amortization of intangible assets associated with acquisitions and stock compensation related expenses) for the third quarter was $4.3 million, or $0.17 per fully diluted share, compared to pro forma net income of $2.3 million or $0.10 per fully diluted share in the third quarter of 2005. Fully diluted shares outstanding as of September 30, 2006 were 25.8 million versus the 23.2 million shares outstanding in the third quarter of 2005.

On a GAAP basis, the company earned $0.09 per fully diluted share for the third quarter of 2006 that compared to $0.08 per fully diluted share in the third quarter of 2005.

For the nine months ended September 30, 2005, the company reported record net revenues of $37.2 million, a 204% increase over the $12.3 million reported for the nine months ended September 30, 2005. Proforma net income for the nine months ended was $10.5 million, or $0.42 per diluted share, an increase of 261% when compared to the proforma net income of $2.9 million or $0.13 per fully diluted share reported for the nine months ended September 30, 2005.

I don't care where these boys take this, I'm adding on the open and if I get a chance at some shares in the 14's I'll add more. This company's fundamentals will take care of me.
Good luck longs

I will also hold my shares 

Smith Micro Software downgraded to "market perform"
Thursday, November 02, 2006 9:19:56 AM ET
Miller Johnson Steichen Kin.
NEW YORK, November 2 (newratings.com) - Analysts at Miller Johnson Steichen Kinnard downgrade Smith Micro Software Inc (ticker: SMSI) from "outperform" to "market perform." The target price is set to $18.50.

vs.

Smith Micro Software "outperform"
Tuesday, October 10, 2006 8:00:33 AM ET
Miller Johnson Steichen Kin.
NEW YORK, October 10 (newratings.com) - Analyst Chad Bennett of Miller Johnson Steichen Kinnard maintains his "outperform" rating on Smith Micro Software Inc (ticker: SMSI).
The target price is set to $17.50.
In a research note published this morning, the analyst mentions that the company is expected to report robust results for the previous quarter due to the impressive demand for its Music Essential Kits (MEK). Smith Micro Software is poised to secure two carrier customers for its QuickLink Music by the end of the year, the analyst says. The company's $100 million shelf filing is aimed at undertaking a large acquisition, Miller Johnson Steichen Kinnard adds.

more detailed info:
Smith Micro Software downgraded to "market perform"

Friday, November 03, 2006 2:11:55 AM ET
Miller Johnson Steichen Kin.

NEW YORK, November 3 (newratings.com) - Analyst Chad Bennett of Miller Johnson Steichen Kinnard downgrades Smith Micro Software Inc (ticker: SMSI) to "market perform," while raising his estimates for the company. The target price has been raised from $17.50 to $18.50.

In a research note published yesterday, the analyst mentions that the downgrade in rating is based on valuation, following the recent appreciation in the company's share price. Smith Micro Software's share price reflects the company's robust 3Q results and raised EPS estimates for FY07 and does not reflect the near-term concerns related to the Connectivity and MEK businesses, the analyst says. The company has reported its 3Q results ahead of the estimates. The EPS estimates for 2006 and 2007 have been raised from $0.54 to $0.61 and from $0.70 to $0.77, respectively.[/color]

back on track ..... 

Cell-phone gadgetry is just getting started

Wireless providers are stepping up to make your phone an MP3 player, a TV and a full-fledged computer in a new round of phone wars. Three tech providers should be among the big winners.
By Michael Brush

Can you see me now?

Verizon Wireless better be ready to update its "hear me now" catchphrase: Giving folks audio-only cell phones (even with cameras) won't cut it for long. The next round of winners in the cellular world will be the ones offering music and video along with the latest round of whiz-bang new phone functions.

Sorting out the winners will be no easy task, as the competition will be fierce. For investors, figuring out which companies will come out on top could be as lucrative as the last round of cell-phone wars, when companies such as Nokia (NOK, news, msgs) and Qualcomm (QCOM, news, msgs) saw their stock prices as much as double between 2002 and 2004. In a minute, I'll give you my three picks. But first, a little background.

In a minute, I'll give you my three picks. But first, a little background.

Generation next
Verizon Wireless, a joint venture of Verizon Communications (VZ, news, msgs) and Vodafone Group (VOD, news, msgs), got the jump in this latest round of competition by adding YouTube video to its V Cast media service this month. It also signed a deal with Revver, another video-sharing Web site that hosts user-generated content.
The main wireless providers in the U.S. -- Sprint Nextel (S, news, msgs), Cingular Wireless and Verizon Wireless -- all are bumping up cell-phone bandwidth to long-awaited "3G," as in third-generation, technology that can provide video and data transmission at speeds close to that of DSL.
Sprint is rolling out a more sophisticated version of its technology called EV-DO Revision A. It can provide download speeds of up to 800 kilobits per second, compared with speeds of about 500 kilobits per second now.
But the real improvement comes in upload speeds -- a change that will pave the way for two-way video conferencing. Upload speeds should increase to 300 to 400 kilobits per second, from around 50 kilobits per second now. Verizon Wireless is making similar upgrades.
Meanwhile, Cingular is bringing out an improvement to its service called "high-speed downlink packet access." This will increase download speeds to 400 to 700 kilobits per second and upload speeds to 400 to 600 kilobits per second by the end of 2007.
In addition to faster speeds, these upgrades will also bring better-quality service because fewer data packets will drop out.
Cell-phone companies will put in even wider pipes over the next two years, in the form of Wi-Fi and WiMAX. These will support blazing speeds, similar to what you get with cable connections. These higher speeds will bring features such as interactive gaming to cell phones. Embedded wireless connections might let you stream live video straight from your camcorder to relatives who couldn't make it back for the holidays.
"The general message is you start to get a very good broadband capacity either from those two cellular roots or from Wi-Fi and WiMAX," says Nigel Rundstrom, who heads the North American multimedia group at Nokia. "Then many of the services that consumers would like to use become more viable."

But do consumers really want to watch "Gone With the Wind" on their cell phones?

David Owens, the director of product marketing at Sprint, concedes that few people will go for a two-hour movie on a small cell-phone screen. But he thinks most people these days are "video-centric," meaning they prefer to get information through video. And they like short bursts of information in videos lasting a minute or two. "Our belief is there is a tremendous appetite for the one-and-a-half-minute clip on handset," Owens says.
More intriguing is the YouTube phenomenon, says Nokia's Rundstrom. "A lot of the traffic from social-networking sites, whether it is MySpace or Flickr or YouTube, will migrate to mobile phones," he says.
Another popular service will be live broadcast video. Chris White, the director of multimedia-products strategy at Motorola (MOT, news, msgs), thinks that will take about 18 months.
Then there's music. Cell-phone service providers hadn't anticipated the popularity, and profitability, of ring tones, which generated $4 billion for carriers worldwide in 2004.
Now they're hoping for a repeat in music. "We believe that full-song music has a similar, if not a more promising, outlook for the carriers," says Lazard Capital Markets analyst Christin Armacost.
Cell-phone providers aren't waiting for Steve Jobs to release an "iPhone." They already offer several phones that double as music players. Users pay extra for a memory card that can store 500 to 1,000 songs, similar to the capacity of the iPod nano from Apple Computer (AAPL, news, msgs).
Carriers offer music through online shops similar to the Apple's popular iTunes service. But cell-phone users typically buy songs using their desktop computers and then load them into their cell phones. With high-speed cell service, more users will likely download straight to their phones.
What's the best way to play this trend? The cleanest 3G plays are the "arms suppliers" (forgive the tech-bubble speak), the companies selling the technology to make it happen. Lazard Capital Markets' Armacost prefers Qualcomm and two smaller companies, Radvision (RVSN, news, msgs) and Smith Micro Software (SMSI, news, msgs).

Qualcomm
Qualcomm is in the "enviable" position of owning much of the intellectual property behind CDMA, one of the dominant standards in wireless communications, says Morningstar (MORN, news, msgs) analyst John Slack. Qualcomm makes money by designing chips used in CDMA phones and by collecting royalties on other companies' sales of handsets that use CDMA technology.
Qualcomm also recently won a supply contract with Motorola, a deal that means Qualcomm will see a healthy gain in its share of the 3G chip market, says Goldman Sachs (GS, news, msgs) analyst Brantley Thompson.
The transition to 3G technology is a big boost for Qualcomm. The switch will boost demand for both CDMA chips and new 3G-capable handsets.
Next, Qualcomm offers one of two leading technologies supporting mobile video broadcasting, called MediaFLO. Qualcomm scored a victory this year when Verizon Wireless adopted MediaFLO as the platform for its video service. "We believe this high-profile partnership will provide a meaningful catalyst for drawing in other service providers to the MediaFLO platform," says Prudential Equity Group's Inder Singh.
Qualcomm is locked in battle with Nokia, which believes Qualcomm's royalties are too high. Qualcomm is also suing Nokia, claiming patent infringement. Uncertainty about the quagmire has probably shaved $5 off Qualcomm's stock price, says Lazard Capital Markets' Armacost. But she thinks Qualcomm will ultimately prevail -- one reason she has a $58 price target on the stock.

Radvision
Based in Tel Aviv, Israel, Radvision develops and markets components for networking gear used to support video communications over the Internet. For years, Radvision has focused on offering equipment for traditional videoconferences.
This year, the company has seen rapid growth in sales of network gateways that support videoconferencing through 3G mobile phones and on desktop computers. These segments account for about a third of Radvision revenue, and they will grow by about 85% and 50% next year, Armacost says. "As we move into 2007, we expect to see some larger-scale 3G video deployments in Europe and Asia and a number of initial trials in North America," she says.
Radvision boasts an impressive list of partners, including Alcatel Lucent (ALU, news, msgs), Nokia, Hewlett-Packard (HPQ, news, msgs) and Siemens (SI, news, msgs). Radvision, whose stock trades for about $20, has around $4 per share in cash and no debt. It produced healthy operating cash flow of $3.7 million in third quarter, and it is buying back stock.

Smith Micro Software
Smith Micro sells software that helps manage the flow of digital content to wireless devices such handsets and laptops connected to carrier networks. Its software is used on wireless modem cards. But Smith Micro also has several stand-alone software products that help manage digital content on your cell phone.
One is called Music Essentials Kit. It's a system for downloading music from online stores to your desktop, managing play lists and transferring music to handsets. Another is a line of compression technology offerings called StuffIt that help reduce the size of digital files such as photos. Smith Micro's largest customer is Verizon Wireless -- both a blessing and a curse. Verizon's success with V Cast and its rollout of 3G mobile phone service is a plus. But Smith Micro gets about 70% of its revenue from Verizon Wireless. That's risky because you don't want companies you invest in to be too dependent on any single customer.
But Armacost thinks Smith Micro will widen its customer base and continue to grow earnings at a double-digit pace for several years. So she has a $24 price target on the stock, which recently traded for $16.

link:
http://articles.moneycentral.msn.com/Investing/CompanyFocus/CellPhoneGadgetryIsJustGettingStarted.aspx?page=all

Found a couple of threads to merge with this, so that put Dan as the leadoff (earliest)thread.

"SMSI" 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.     
All history on a stock pick in 1 thread is awesome.     

Thank You....and good luck with all your trades....make some $$$     

Zacks update:
Zacks Bull and Bear of the Day Highlights: Smith Micro, Quinsa, CNA and Loews

CHICAGO--(BUSINESS WIRE)--Zacks Equity Research highlights Smith Micro (Nasdaq: SMSI) as the Bull of the Day and Quinsa (NYSE: LQU) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on CNA (NYSE: CNA) and Loews (NYSE: LTR). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all four stocks:

Bull of the Day:
Our Bull of the Day recommendation is for Smith Micro (Nasdaq: SMSI). Smith Micro is a developer of wireless communications software and utility software for multiple OS platforms. It has significant relationships with several large cellular providers and OEM cell phone manufacturers. Revenue growth is benefiting from new products such as music downloads to cell phones. Future products include video downloads and Enterprise communications management. The company recently sold 4.0 million shares at $14.75. We are adjusting our forecasts accordingly.
Our price target is $20 a share.

&

Smith Micro Software "buy," estimates reduced

Friday, December 15, 2006 3:31:34 AM ET
Lazard Capital Markets

NEW YORK, December 15 (newratings.com) - Analysts at Lazard Capital maintain their "buy" rating on Smith Micro Software Inc (ticker: SMSI), while reducing their estimates for the company.
The one-year target price is set to $24.

In a research note published yesterday, the analysts mention that the company has concluded a 4.5 million equity offering at $14.75 per share, representing a 3.6% discount to the closing price on December 13. Smith Micro Software has initiated several measures to diversify from Verizon to other hardware devices, such as higher-margin phones, the analysts say. The EPS estimates for 2006 and 2007 have been reduced from $0.55 to $0.54 and from $0.64 to $0.61, respectively.

Smith Micro Software initiated with "buy"

Tuesday, December 26, 2006 8:10:31 AM ET
UBS
NEW YORK, December 26 (newratings.com) - Analysts at UBS initiate coverage of Smith Micro Software Inc (ticker: SMSI) with a "buy" rating.
The target price is set to $18.

fyI:

Greetings,

The Fool one-on-one with Bill Smith, et. al. was overcome by events. I was able to attend his briefing, participate in a breakout session with six other analysts, and spend about five minutes with him in the hallway. I also talked briefly with a couple of the analysts. I also met the Think Equities analyst that covers them and am instigating an e-mail discussion of the company with him. I'll post periodically when new info warrants an update. Bubba Tom has been following these guys for awhile and I've often relied on his fine posts to educate myself on the company. Now that I've heard the story first hand and live, I figured I'd give everyone my impressions. Some of this is inferred impression, so please take it as it is intended.

If you invest in this company beyond the numbers they release, you are betting on Bill Smith. He has his story and he is sticking with it. He is very tight lipped beyond what he wants to say and gets obstinate when someone insists on drilling down any further. The CFO seemed a little more forthcoming in the breakout session but Mr. Smith would cut him off and say, "This is what we are saying about that". This stance didn't particularly bother me, but it clearly didn't set well with some of the analysts. At one point they were repeatedly asking questions to determine unit pricing on Music Essentials and Mr. Smith finally just told them the calculation they should use to estimate this based on numbers that had been released. There is definitely some tension here. I think this is a high risk / high reward call for these analysts and they really want to get it right. He's making them work for it. This was probably the most animated of any of the breakout sessions I attended and clearly Quicklink Music was the issue on everyone's mind. I finally broke in and asked about StuffIt Wireless with about three minutes left on the clock. This got Bill Smith back on track and he laid out the situation a little. I'll expound on this a little more in a minute. After the breakout, he came up to me and thanked me for letting him end on a high note. I guess I'm brown nosing already. I talked to him a few minutes and I'll include that in what follows. I can guarantee that all those sophisticated questions about future Stuff-It applications that some of you posted on the board were not in the cards. I asked him about licensing to content providers or other application providers and it was clear that any of that is quite away down the road.

Like many growth stories, it is easy to get anxious and get way ahead of any realistic adoption curve. These things take time and rollouts will be measured in years. That doesn't mean that the company won't continue to grow extremely fast, it just means that calculating the yearly royalties on 1B handsets and determining that SMSI should be priced at $200 is jumping way ahead of ourselves. Just so you know what I mean, SMSI will get about $0.25 per handset for StuffIt. At 1B handsets per year, this is $250M in royalties or $10/share. At a multiple of 20, this puts the SMSI share price at $200 neglecting all of their other products. Let's dial it back and look at where they actually are today.

Let me talk about their source of revenue today. Their consumer software business contributes 20%. This consists of desktop applications such as StuffIt, Spring Cleaning, Internet Cleanup, and FAXstf. Most of this came to the company through the Allume acquisition. Another 70-75% of their revenue comes from Verizon. This is for Music Essentials and QuickLink Mobile. The final 5-10% comes from other carriers for QuickLink Mobile and a smattering of revenue from QuickLink Mobile Enterprise, which is just now getting off the ground. In the most recent quarter, Music Essentials became their largest revenue-producing product and Verizon is currently the sole customer in this area.

QuickLink Mobile is their data connectivity product. It is sold in three ways. First as a handset application, second as a WiFi plug-in application for laptops, and thirdly as an embedded application in WiFi ready PCs. Verizon uses SMSI and I believe this partnership is secure because of the enormous costs and hassle that Verizon would encounter if they decided to switch horses in mid-stream. Sprint/Nextel uses their own home-brewed software and Cingular uses a competing product from PCTel. SMSI also has agreements with seven or eight smaller carriers throughout the world.

QuickLink Mobile Enterprise is a server-based application that allows companies to data-enable their entire work force. It covers both wireless LAN and WiFi scenarios and has built-in security features that allow employees to access their corporate networks wirelessly from anywhere via cell phone or laptop. They have six customers signed up and are actively selling this product. They focus their in-house sales force on large customers needing thousands of seats and use OEMs selling managed mobility to reach smaller customers. They take revenue on sales on a pro-rated 12 month basis going forward following a sale, so revenues will build gradually. We should watch the deferred revenue account on the balance sheet to measure the volume of business here going forward.

Music Essentials is a connectivity product that allows the user to organize playlists on their computer for download to their music-enabled Verizon V-cast cell phones. This product is their hottest property currently. There is also a good chance that other carriers will pick up this product, as there isn't any real competition currently. There will be eventually. Analysts expect cell phones to surpass iPods and other standalone devices for mobile music by the middle of 2009. There is a lot that can happen between now and then, but this area looks really good for SMSI currently. The application uses a version of Windows Media for the PC interface. It does the job but could be better. This is where QuickLink Music comes in.

QuickLink Music is the hot topic of the day. This product was made possible by the PhoTags acquisition and is what all the analysts are watching. This product runs on a PC and allows the carrier to take full control of their users' multimedia experience. It has a new interface and is reportedly, every bit as functional and easy to use as iTunes. This will allow the carriers to set up their own Music Store and gain the revenue from the original download that currently goes to Apple or some other provider. It has utilities for organizing, storing, and manipulating songs on the computer. It also has a "quick-look" feature that tells you how many more songs your phone can store. It looks pretty slick from the screenshots I saw. They have no current customers. Bill Smith has been saying they will have a customer by the end of September and multiple customers by the end of the year. He stood by those statements, but allowed that the first signing might end up being in early October. This will be very important to watch play out as it will validate the company's assertions that the carriers are very interested. Most of the breakout session was taken up by analysts trying to pin SMSI down on pricing for this product and expected ramp rates. This is where Mr. Smith refused to give any information and it got a little heated. This area should be monitored closely by those interested in SMSI.

StuffIt Wireless and StuffIt Image are products that have resulted from the Allume acquisition. This is the 900-pound gorilla in the room and will be a 2007 and beyond story. They can losslessly compress JPEG by a further 30% and it is envisioned that this will become a standard in digital cameras and camera-enabled cell phones in the future. One can imagine all sorts of other applications, but this is all putting the cart before the horse. When they went to the handset manufacturers, the Holy Grail was being able to compress all the native phone resources, cramming more services into a smaller memory profile. They are currently trialing this concept with a couple of companies according to Mr. Smith. I think they have a tiger by the tail here, but we have to wait and see if they can monetize it.

I think I've probably gone on for long enough. I really like this company and what they are doing. I can see them at much higher prices in the future. The problem is that with all current information, they are fully priced and assuming that things go pretty well. These kinds of companies tend toward the more highly speculative end of the spectrum. I'm in, but I'm not buying more at these prices until I see more material contracts signed. This is a company, which if successful, will never have appeared to have been a deal. If you are following along, watch for new customer deals, and ride the wave if you have the courage.

Regards,
Stan

http://boards.fool.com/Message.asp?mid=24592589

short % down 4%:
http://www.shortsqueeze.com/index.php?symbol=smsi&submit=Enter

any other opinion?