Will SMSI go on a Q3 ‘Earnings Anticipation run’?

This morning, SMSI announced the Q3 earnings date which will be on 10/24/19  after the market close. In the prior two quarters, StoryTrading accurately predicted earnings anticipation runs between the ER date release and the actual ER report. Will SMSI run again between today and next Thursday?

Unlike the past two ER anticipation runs, the stock is already up 17% in the last 10 trading days. Will there be fuel in the tank for more? That may largely depend on what caused the run in the last 10 days and what investors anticipate for earnings in Q3. The consensus in our SMSI Research Group seems to be the sharp decline in price prior to this most recent run was due to Warrant conversions and a technical breakdown as can be seen here. There is speculation based on price action and reading the tape, that warrant conversions are done and this is the reason for the recent 17% run. If that’s true, there could be room for an anticipation run within the next week. 

In Q2, StoryTrading conducting a poll which found that most participants expected $0.03 to $0.04 earnings, above the $0.01 EPS street estimate. 26% expected earnings over 4 cents. SMSI blew away all estimates with $0.08 adjusted EPS. As a result, the stock immediately gapped and nearly doubled within a few days! How the stock reacts this quarter will largely depend on how the company performs vs expectations so we’ve launched another earnings poll which you can vote on right here:

A couple other things investors may be anticipating on the call are the possibility that Orange Telecom will be announced as a new ViewSpot customer, and any indications of a new T1 being signed up for SafePath.

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