For SMSI, revenue growth is the key. Q1 beats, Q2 outlook light. Management during CC says some revenue meant for Q2 is realized in Q1. If we add the 2 quarters numbers up, the total would be about the same as the market expected. We know outlook is always weighing more on the market sentiment than the current, so the report is slightly negative.
Management is very optimistic. For the first time in many quarters, B.Smith does sound confident. If this CC were for another company, the market would respond nicely; however, there is a big credibility issue for the managements in general and B. Smith in particular. It will take another quarter or two to restore market trust if SMSI does deliver much improved numbers in the second half.
Don't know about tomorrow, but I believe the price will trend up from this point. Once bitten, twice shy, I will of course take B. Smith's bullish words with a huge grain of salt. That being said, at this juncture, I believe keeping current position is a good strategy. I won't buy more. SMSI is a hold.
This SMSI stock now constitutes 1.8% of my total all tech holdings.