SMIT isn't likely to be a takeover candidate for two reasons:
1) It's 55% owned by insiders. They see explosive growth coming
over the next several years, and they're going to be much richer by
hanging on for the ride instead of selling out before it barely
begins.
2) It's too small -- only 25 employees. Right now most competitors
would barely acknowledge that they exist, though they will soon
enough!
I bought a bunch of shares in SMIT and plan to hold for a long, long
time for the following reasons:
1) Everything in the earlier posts is true (great management,
technology that's truly a quantum leap ahead of the competition,
unlimited potential applications for it, etc).
2) It's real, not hype. They're already making and selling the TMS-
2000 machines that will drive the earnings through the roof. They
just started making them in Sept 1995 and selling them in November.
Given that their fiscal year ends in May, that means they'll only
have been selling them for about half a year. The company estimates
they'll sell double that amount next year, and double again the
amount the following year, all on machines that produce huge profit
margins for them.
3) They've got lots of room to grow -- they bought 20,000 sq ft. plus
in a warehouse and it's only being 1/4 utilized. Plus it's paid for,
so no big new expenses coming up.
4) According to SMIT, their technology is patented and proprietary,
so no one else can come along and steal it.
5) Institutions only own 15% or so, so there's lots of opportunity
for them to drive the price much, much higher.
6) Red Chip Alert (www.redchip.com) issued a great report on SMIT
on Feb 7 1996 that's already hopelessly outdated. A new one's coming
out shortly, and will describe in full detail the enormous opportunity
SMIT has.
7) The company already has at least 5 good new applications for the
laser technology that don't fit into the current profit picture just
yet. The potential -- for a group that understands the technology
and clearly knows how to apply it profitably -- is breathtaking.
I try not to sound too much like a cheerleader for SMIT, but it's the
best stock opportunity I've ever come across. Anyone who already owns
this has the opportunity to be in on the ground floor of a co. with
incredible long-term growth prospects. It's what we all look for
yet never seem to find. If this works out anywhere near as well as
it can, it will be very profitable. |
