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To: Blue h2o who wrote (148628)	8/3/2006 10:19:24 AM
From: Jane4IceCream	Read Replies (1) \| Respond to of 208838

XING....you go guy Jane

To: Blue h2o who wrote (148628)	8/3/2006 12:35:19 PM
From: hotlinktuna	Respond to of 208838

Hey kurt, trying SMSI again 11.12 -.15 after I read this off Yahoo message board a few minutes ago: Smith Micro Software (SMSI5,6,7,8,9 $11.27) Buy Reiterate Buy On Recent Weakness · Shares of SMSI have recently been under pressure. We believe investor concerns may be due to fear that SMSI might get pulled into the options backdating scandal that has hit other companies. · We reviewed 10 years of options activity on the company (1996-2005). We believe concerns driving the price decline are unwarranted. Charts are attached for each year for review. · We noted that in two instances, options were priced below the stock price on the day of issuance. We discussed these instances with management. On February 5, 2002, 100,000 options were issued to the CEO and CFO each at an exercise price of $0.95 per share, below the stock’s closing price of $1.15 (trading range of $1.15-1.27). We believe that options can be granted below market value, provided they are expensed. We note that the total difference between market value and exercise price was just $40,000 combined for both executives, not material in our view. In the second instance, dated August 3, 2001, options were granted to the CEO (52,250), CFO (38,000) and CTO (12,500) at $1.01 per share, below the stock’s closing price of $1.05 (trading range of $1.05-1.11). In this instance, management indicated that the board had approved the options two days earlier, at which point the stock was trading in the $1.01 range, but that the paperwork wasn’t completed until the 3rd. We note also that the following trading day, the stock traded down to $1.00. Only in one other instance (April 20, 2005), was an executive (CTO) awarded options at the lowest price within a range of days. · We believe SMSI’s fundamentals remain strong. Verizon Wireless is aggressively marketing its new “Chocolate” MP3 phone (LG 8500), which should be a significant positive for SMSI’s music kit, since the carrier is including a kit with every purchase of the phone at no additional charge. We expect SMSI to sign new carriers for its music platform over the next few quarters. · Reiterate Buy. We believe SMSI is still at the early stages of significant opportunities in broadband wireless and has layered on a number of high-potential opportunites, including music and picture applications that benefit from a carrier push for multimedia services to enhance their revenue streams. Our price target of $20 is 25x our 2007 EPS estimate of $0.80. Risks include a slowdown in customer wireless broadband and music take-rates, fluctuations in EV-DO rollout schedules, and high customer concentration. Rich Church Senior Communications Equipment Analyst C.E. Unterberg, Towbin tuna