The Microcap Speculator submits: I completely missed the move in SMTC Corporation (ticker: SMTX) this past August and have been kicking myself ever since. Now, after retracing the majority of the upmove, the stock seems to have found a bit of support between 1.40-1.45.
SMTC is an outsourced electronics manufacturing services (NYSE:EMS) company. Unlike many in this sector, it actually makes money. Last quarter, excluding a non-cash gain, SMTC earned $.03/share. That was an increase of 50% quarter-over-quarter, although judging from the drop in the stock the market expected more. The company trades at a low price-to-sales ratio and seems reasonably priced by most other metrics.
I took a small position today and may buy more if this base holds.
DISCLOSURE: I am long SMTX. Not a recommendation to buy or sell any security. For informational and educational purposes only.
SMTX 1-Yr Chart