April 24th, 2009
Apr 24, 2009 SMTC CORP. ( SMTX- NASDAQ- .52) SMTX is a mid tier provider of end-to-end electronics manufacturing services, or EMS, including product design and sustaining engineering services, printed circuit board assembly or PCBA. production, enclosure fabrication system integration and comprehensive testing services, configuration to order and customer fulfillment. SMTX has facilities in the USA, Canada, Mexico and China. The company employs 1000 full time employees.
SMTX has five manufacturing/technology centers worldwide, approx 550k sq. ft. of capacity and more than 40 manufacturing and assembly lines. Rev. for 2008 equaled: 72% industrial, 16% networking and computing and 12% from communications.
Rev was down slight from 07- $242 million vs $256 million--- net income/sh was (.40) for 08 vs .18 for 07.
It is very important to note that the loss from 08 was primarily restructuring charges--not from operations! Actually SMTX was almost brake even for 08!! The stated book is $1.46--so we trade at 66% below bk-- The Ltd dropped by $2 million to only $16 million. Cash at the end of Jan 09 q or year end was around .18/sh. The PSR is a tiny .03- an additional indication of an extremely undervalued investment opp.
We base our assumptions on 14.6 million shares fully diluted and outstanding.
SMTX is currently trading near its 52 wk low, has a tiny PSR of .03, trades at 66% below stated book and in our opinion wrote everything off during fiscal 09 so it could be in the position to show positive results during fiscal 10 even in a recessionary environment. As you can see most of operations are located in low wage areas of the world which can only benefit the income statement. We have been in this stock when is was $7 a few years ago--so this opp. has the ability to run and run hard. The share price maybe tiny but keep in mind that SMTX does 1/4 Billion in sales!!!!!!
We rate SMTX with a strong buy rating at current levels for 5x-6x your investment if management can fire up the biz and that will most likely happen as the economy warms up! SMTX at current levels could easily be a takeover target--market cap only $7 million!!
Diverse investor types should own a position in SMTX before it runs to the moon!
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FINAL 2 NOTES OF INTEREST!
1. PDVG.PK --HAVE NOT CHANGED OPINION
2. GREAT WAY TO PLAY MAJOR OIL @ 3X THE ACTION- ERX-- GREAT TRADER AND SHOULD OWN SOME-- ISRAEL WILL HIT IRAN SOOOOON AND OIL WILL SPIKE AND THIS OPP. WILL FLY VERY HIGH! CHECK IT OUT ERX- AROUND $25.00- YOU REALLY CANNOT BELIEVE THAT CLINTON OR OBAMA HAVE ANY BALLS AT ALL- THEY JUST TALK WITH LITTLE ACTION AND ISRAEL HAS NO OPTIONS!
WE HAVE NOT BEEN PAID BY ANY LISTED INVESTMENT WITHIN THIS EMAIL AND MAY BUY, SELL AND OR HOLD AT OUR OWN DISCRETION! FOR MORE INFORMATION ABOUT OUR SERVICE LOOK AT THE LAST EMAIL FOR SUB INFORMATION!
FOR MORE INFORMATION CALL 801 272 4761
mailing address:
saadvisory
4700 s holladay blvd
slc,utah 84117
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S.A.Advisory
William Velmer
Job Title
phone:
949 922-9986
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