Date: Fri Aug 26, 2005 12:21 am
SMTX: SMTC corp. $2.24
SMTC Corporation provides electronics manufacturing services to originalequipment manufacturers - Strong Buy
Market cap: 20.54 Mil.Revenues: 2002 - 569 MIl, 2003 - 306Mil, 2004 - 245 Mil. Okay so decliningrevenue and market has observed sometime of a failed business model which iswhy stock price is down from 100 to 2.24. Having said that, CEO has tried toturn the company around over the last few quarters. Revenue has reduced asthey are trying to cut the unprofitable businesses and keep the profitableones.
Last quarter revenue was 49.1 Mil loss 2.6 mil. This quarter revenue is 57mil and profits 0.3 mil. Revenue growth with increased profitability. Thisstatement is the catalyst that summarizes why I think it is a screaming buy.The company is finally turning around. This was a quarter of significantfinancial improvement across the board returning to profitability,sequential growth, cash generation, improved working capital and debtreduction.
They have 17.7 mil in debts. But the debt seems to be in control. The stockprice has doubled over days, so better look at the chart.
Don't want to hype this stock but I think this stock can be the growth stockof the year. Buying over the next few days might result in fluctuationssince this stock seems way overbought in the short term but again news wasexcellent and volume was heavy and it has pulled back a little.
Good luck!
