Anybody wonder why Wedbush would project Smith to still make $134 million next year and a $9 target if they thought the problems were much more pervasive than just the inventory issue? Seems curious.
$134M represents TWO years of no topline growth.
no offense but the company is likely to do just $0.25/$0.30 proforma EPS in FY11 thats a 30/35X multiple. On a GAP basis they are going into the RED.
So $9 sounds about the right PT
If there is no uptick in guidance for Q2/11 this stock will trade down over the summer waiting for Q3 numbers. I see $5/$6 share price. This stock is loaded with RISK.
Isn't the pertinent question, "At 8.00 is all that in the stock already?"
Also, considering Wedbush's estimates were above the consensus, is there dropping back merely coming in line?
All things considered, it looks to be a buy at 8ish.
the estimates are based on what smitty tells the analysts and so far all they have said is we hope or we think and the analysts have been going along with this. But when you look at the way their business model is said to work there should be no way that they lose all of the revenue from Verizon for a quarter unless they are losing the business or verizon doesn't have new customers coming on line. Now that being said the iphone is probably fueling verizons new customers and smith doesn't have anything to do with that and when you can connect your laptop through the iphone why pay for the other services.
"Checks Indicate More Than Inventory Concerns"
Now there's a surprise!
It seems the gang that couldn't shoot straight can't talk straight either.
There must be legal implications to all this.
Wedbush Downgrades Smith Micro Software (SMSI) to Neutral; Checks Indicate More Than Inventory Concerns
Cracks in various business relatioships!!!!!!!
What will Bill do with all those employees?????
Does He have time to re-invent Smith Micro one more time.
This is a classical " Clueless Management Syndrome"
How U spell RISKY INVESTMENT ???????????? ?????????????????