I'm not worried about it. This company has earned 9 cents over the last 5 quarters. If somebody wants to sell his shares at 15 cents, then he's free to make that poor decision. Even if this company misses for the current quarter and reports a sub-par Christmas, the company is still worth more than 15 cents per share.
..... And they are guiding expectations for a loss through the Black Friday/Christmas season... Nice!
This "turnaround story" is not even starting it's turnaround yet. You keep hearing about this company turning it around.... But it just doesn't ever happen.
Well... Maybe next year.
Selling the company is not their only option... They can continue to rake in the millions for years and years while the stock price trends ever lower but never going to zero in bankruptcy. I've seen it many times. Look at Coldwater Creek for example: It has not produced more than two profitable quarters since before the start of the Great Recession in '08, but it just ate all of its cash-on-hand, then it issued a secondary offering deluting the common stockholders and did a reverse-split to keep it from being a penny stock. All along senior execs raked in millions of dollars while the stock stays in the gutter.
I say all that to say, be careful with stocks that keep announcing profitless quarters. While it appears there is buyout value or turnaround value, often neither ever occurs.
I can't argue with you there. $1 makes sense: 8 cents profit times a P/E Ratio of 12 is a 96 cent stock price. A P/E of 12 is definitely not a large P/E, but the stock is still worth a buck with 10 cents profit times a P/E of 10--an even smaller multiple--so a $1 target price makes sense, so long as the company doesn't stumble very badly. Good Luck Tfor2!
Short!?... no, I'm bullish on SMDM. Long at $.16, plus a little more profit by successfully trading around my core position. Hopefully, the good luck can continue. I believe Mr. Atkinson when he says that some of the revenue not reported last Q will show up in the next quarterly report, so I am hoping for another nice pop on further good earnings.
Was that you being a 'market manipulator' again? I noticed that buy of 100 shares at the end-of-day that brought the price back up into the green before the close. I laughed when I saw it, but honestly, it's a pretty smart thing to do if there is a spread between the bid and ask.
I am still bullish after this miss, as the company was still profitable. Also, if what Mr. Atkinson said is spot-on about some of the revenue from last quarters miss hitting in this quarter, then the next quarter should be huge! In that case, this stock is still cheap in the 30-something-cents-per-share range.
Either way, just as I said before, this company is still profitable. This new product, the HOME, should allow The Singing Machine to continue to turn a profit and pay down debt. This company is moving in the right direction.
I was thinking the same thing. Chris Bosh loves karaoke. There's a video of him on YouTube on stage in front of a lot of people with a big wig on his head, singing on a microphone having a good time. I know Bosh is a pretty big name, but since this company is in Ft. Lauderdale and Bosh plays for Miami, it might be a perfect match. Even though he is a big-time pro athlete, many of those athletes tend to do a lot of TV commercials that show in the local market for their hometown fans. Mr. Atkinson, if you or someone in your office could get in touch with Bosh's agent and see if he is open to doing a TV commercial that would show in the South Florida market, it could be a big move.
I still like this company. I hope you got in while you had the chance... Actually, you still have a chance. It's still cheap!
This pop has only added $2.5MM to SMDM's market cap. This price appreciation has merely lifted the trailing P/E ratio from 3.2 to 4.3, which would hardly be characterized as a 'nose-bleed level'. This company is growing aggressively on both the top and bottom lines, which warants a higher P/E, but it has a P/E ratio that is even incredibly low for an old boring mega-cap value stock stuck in the past. On a Price-to-Sales metric, this company is trading at only .361 times trailing revenues ($12.44MM market cap/$34.4MM in revs). There are not many businesses out there for sale at just 36% of last year's revs. If this new product that will be available at Best Buy's website and in-store locations increases top-line revenues just 10%, which is not an aggressive assumption at all, then this company is only trading at .328 times revenues based on that 10% revenue growth projection. Also, assuming that same 10% growth in top-line revs could also add another penny or two of profit to the bottom line. So, while this company is trading at 4.2 times trailing earnings, it might actually still be trading at just 3 times forward earnings.
As more news flows in of new products like this one, and quarterly reports continue to account for top-line and bottom-line growth, more investors will start paying attention. This company is still cheap for the simple reason that the growth is still in the beginning phases. As more investors see the trends, price appreciation will jump in this stock with its small float, and few willing sellers. This is a recipe for aggressive price appreciation in the stock, with continuing positive results in 10Qs and 10Ks from this new product that was announced last week.
At the trough today, which was 21 cents, somebody got a steal. Whoever snagged shares at that price got them at a trailing-P/E ratio of 2.7. Actually, this stock has been trading between 2.7 to 3.8 times earnings for the last month or so. All the available shares--whether they are being picked up at the bid or at the ask--are a steal. You're right, Tfor2, this is absurd.
Sentiment: Strong Buy
This stock is so cheap right now. So long as this company just keeps earning the same profit next year as they did over the last year, they could become debt free and still have a little left over for new investment and innovation.
It's amazing that this company is only trading at 3 times last year's earnings. This stock could pop with a 100% stock price pop, and the stock would still be cheap!
(Shaking my head) It's sad when people lose so much in a poor investment that they completely lose their mind.
By the way, look at MSO's long-term stock chart, and their 10Ks and 10Qs. There isn't enough there to lift this dying company even if MSO is allowed to sell it's goods in Macy's and JCP (which looks pretty unlikely considering Macy's agreement with Martha Stewart Living Omnimedia). JCP has almost certainly lost this case against Macy's.
Touché, Green Country!
Yeah, this is not a stock to own even overnight, so it definitely is not a company to own as a centerpiece of a college fund/retirment fund. The bankruptcy fears are legit.