This is crazy, SCMM up huge today and no posts. No posts since Dec 30 for that matter. Well for you lurkers out there and you know who you are, here's my take on the situation:
based on my limited understanding of the situation, I believe SCMM will continue to trade up in the near term. Earnings are due out next week (2/22 or 23) and based on price activity and the results from the last few quarters we should expect to see an upside surprise. How much is already priced in I don't know. SCMM has a small # of shares outstanding and you can bet your bottom dollar that we will see a split announcement very soon. SCMM has working relationships with MSFT, INTC, MOT, cable labs, and gemplus (sp) to name a few. The company has a lot of cash and no debt. There is also a very large short position and todays action was in no small part due to short covering.
All these thing aside, SCMM is an internet play and will continue to benefit from the growth smart cards and security access devices for many years to come. The best plays on the internets going forward are in my book companies like SCMM, LHSPF, Exodus, and DLIA. I am long them all and I see plenty of upside.
Let me know what you think.
Dave |
