SMTX

[fairfield]

Beautiful chart.Looks like a breakout will happen anyday now. Blue skies aboev $2.65 IMO

[missdell]

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

[fairfield]

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

[fairfield]

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

[vivaviagra]

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

[vivaviagra]

Reminder: Earnings after hours on Tuesday August 5. Keep an eye on this one

[kiky129]

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

[iamonfire]

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.

[setravis]

"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.                                           
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 $$$       

[setravis]

Here is the updated chart look...

[iamonfire]

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 !!!!

[iamonfire]

   
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.

[setravis]

iamonfire,
Your Post has been merged with current thread on this stock.
You need to follow the forum rules.

[iamonfire]

http://stockcharts.com/h-sc/ui?s=smtx&p=D&b=5&g=0&id=0

[odumbahater]

Why is this gaining over 50% this week while the markets are taking all around it??