SMDM is trading at 4.8 x Earnings (TTM) and .25 x Sales
the Singing Machine (SMDM) has moved back to profitability and is growing revenues and profits, but the stock price doesn’t reflect it yet. It has a market cap of only $6.5MM, but earned $1.4MM in profit last quarter alone. Net sales increased 90% year-over-year to $16.7MM for this quarter thanks to a strong Christmas. The growth is due to their products being added to more big-box retailers. The stock popped on this news, but now it is trailing back down in price.
Here is a chance to buy a company that is growing profits at 30% year-over-year and earnings 90% year-over-year at a price that reflects no growth at all! The company is too small for big funds to buy into, however, its growth is still quite real.
This company should easily meet its low-ball expectations. The market has been doing very well, however, after SMDM's earnings beat last quarter, the stock has stayed mostly flat. If it beats earning again next month, we will see another quick 40% pop. However, even after that pop, the stock will still have a P/E ratio below 10. It is a great opportunity here.
Not spam, Tommy. This is a micro-cap stock with very low trading volume, but the year-over-year revenue and profit growth is legit. I am always looking for under-the-radar companies that nobody knows about that are quietly CRUSHING IT, and I think I found one. I am long the stock, and I am "preaching my book", but I own shares because I believe in its growth long term.... And again, even if the growth stalls and revenue and profit stay at this level, then it's still a cheap stock here at just 5 times trailing earnings.