SMTX

[iamonfire]

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.

[setravis]

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

[iamonfire]

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.

[iamonfire]

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)