Big E,
Just my thoughts,
Still not clear what SMU has done to merit an upgrade. Their talk is cheap, as they say as they have consistently disappointed. What will they receive for the MT/Rail? When will the new manufacturer for their ITS be announced? Do you believe AI as a profit center? This last spike should support the price, but upside progress (>8) will need some reality. Numbers announced! New ITS numbers or New Q earnings.
Breed is in really bad shape, talk of liquidation could bring SMU to the for front as another supplier hits the wall. Majors want SMU/AI to succeed and they will continue to support them, give them contracts. Manufacturers need diversity in suppliers so as to obtain parts cheap by keeping competition alive. SMU needs to raise prices, but as of now they will not risk it as they have not delivered.
Re Market: Regardless of the Fed actions, look out below. Plenty of air supporting the big caps. Soon many investors will need an ITS for head protection a they bang their head asking themselves, "What was I thinking paying $70 for TSCM last week. 1.5 billion for 4 million in earnings? and 8million in loses? Imagine, an ITS in every home office! |
