Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mobile software specialist Smith Micro Software (Nasdaq: SMSI) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Smith Micro's business and see what CAPS investors are saying about the stock right now.
Smith Micro facts
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Headquarters (Founded)
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Aliso Viejo, Calif. (1982)
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Market Cap
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$247 million
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Industry
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Software
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Trailing-12-Month Revenue
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$104 million
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Management
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Co-Founder/CEO William Smith, Jr.
CFO Andrew Schmidt
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Return on Equity (Average, Past 3 Years)
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2.6%
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Cash / Debt
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$16.2 million / $0
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Competitors
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Cisco Systems (Nasdaq: CSCO)
Microsoft (Nasdaq: MSFT)
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CAPS Members Bullish on SMSI Also Bullish on
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Nuance Communications (Nasdaq: NUAN)
Google (Nasdaq: GOOG)
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CAPS Members Bearish on SMSI Also Bearish on
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Buffalo Wild Wings (Nasdaq: BWLD)
Blue Nile (Nasdaq: NILE)
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Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, company earnings release, and Motley Fool CAPS.
On CAPS, 96.2% of the 810 members who have rated Smith Micro believe the stock will outperform the S&P 500 going forward. These bulls include All-Star TSIF, who is ranked in the top 2% of our community, and Tomdunno.
In a pitch from last Thursday, TSIF urged Fools to pounce on the stock's recent plunge:
Smith Micro has had some rough times in this economy, but still managed to post a small profit this quarter. ... Overall, the share price hit today of 28% was mostly due to a lowering of forward guidance. ... Forward [revenue] guidance was reduced by about $5 Million or about 5% and the stock tumbled. I don't care for Smith Micro's stock compensation, but I do appreciate honesty and a company with NO DEBT that is making a profit in a recession. I'm banking that the steep cut in Smith Micro's share price was overdone and will bounce back up.
In a reply to that pitch, Tomdunno noticed that Smith Micro could make a tantalizing takeover target: "I believe that a company positioned in the sector such as Smith will benefit. Add to that decent cash on the books, ZERO debt, good customer base, entry into the hand held arena as well as pc's and you have the mix for one of two things ... Profits or buyout."
What do you think about Smith Micro, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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