SMTX: Is it at least a momentum play?

SMTX (@3.12): SMTC corporation

I would like to make an important correction to my earlier post. Yahoo finance shows Market cap as 29.35 Mil but that is incorrect. Company's 10K shows company handed out shares last year for reducing debt. Simply put: 14.2 Million shares outstanding today and 5 mil more can be exercised as per 10Q (which might have already been dumped into the open market given the recent 300% rise).

For those still following SMTX here are some updates. SMTX closed between 3.48 and 3 in the last 11 consecutive trading sessions. There was a lot of profit taking on Aug 29 where stock closed higher with 4 MIL volume after a 50% jump on the previous day. SMTX broke through earlier support levels of 3.33 to the down side a few days back on low volume. Last 3 to 4 days stock kept falling on low volume.

For the last 2 days the stock is turning around. Yesterday the stock was at 2.9 levels all day and then closed higher at 3.02 on high volume in the final hour of trading.
Same story today: Stock trades between 2.9 and 2.95 all day and surges in the last hour to close at 3.12.

Below are the trading volumes for the last 5 days.
13-Sep-05 526,517
12-Sep-05 492,100
9-Sep-05 326,100
8-Sep-05 334,800
7-Sep-05 185,700

I think it's a good time to dip in tomorrow if you believe in momentum. I am in!

If you believe in value, it's a good place to be too - the only difference being that it is not the unbelievably undervalued company I initially thought it was.