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It's been a full year since I have updated the Seeking Alpha community on Smith Micro (NASDAQ:SMSI). During this past year, I became increasingly sour on the name due to the risk factor I highlighted in
AT&T Promotion May Rescue Smith Micro
Summary
- SMSI’s cash position has become tenuous due to continuous delays by Tier 1 carriers to fully launch/market the company’s family safety product.
- This led to a dilutive convertible debt financing that disappointed investors.
- A bad situation was made worse when a Tier 1 carrier notified SMSI they will no longer be contracting with them for the family safety offering, effective June 30, 2023.
- Still, SMSI could be a long-term investment success if AT&T continues to progress and ultimately promotes SMSI’s product, as is expected to happen later this year.
- T-Mobile may also bolster SMSI’s business, but I expect any major impact with them to be seen in 2024, and not earlier.
I try to be ahead of the curve, looking for opportunities where the market has not yet figured out or appreciated a company's fundamental business or upcoming catalysts. I have an accounting degree from Creighton University and a Masters in Philanthropy and Nonprofit Development from the University of Northern Iowa. I invest for retirement and as a hobby. I primarily engage in fundamental analysis and look for large discrepancies in what I believe a company is worth and their current share price.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SMSI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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