Smith Micro Software, Inc. (NASDAQ:SMSI) $SMSI #Stocks #Software Buy on Dips
Proven Solutions For A Mobile World
Smith Micro Software
Ticker: NASDAQ:SMSI
Price: $4.42
Recommendation: Buy
Sector Outlook
As the reopening of the world and retail outlets is slowly starting to take place, the newest mandates instruct all of us to proceed with caution. When retail stores reopen, they will face the challenges of implementing a new normal, including masks, social distancing, limiting the number of shoppers in the store, and maintaining a continuously clean and sanitized shopping environment. This will be a strange “new normal” for shoppers who like to touch, explore and test items before making purchase decision.
For retailers and business owners, the optimism of shoppers filling their stores once stay-at-home orders are lifted need to be tempered with realism. With uncertainty at an all-time high and disposable income at an all-time low for millions of newly unemployed people, the normal that will unfold will probably be quite different than what it was in the past.
COVID-19 has changed the way people evaluate, buy and interact with brands. For many, stay-at-home orders have led to a steep increase in eCommerce activity at the expense of brick-and-mortar retail. If eCommerce wasn’t something a consumer considered before COVID-19, it certainly is now.
It’s quite reasonable to expect activities like window shopping and casual browsing to be much less prevalent as consumers prioritize “essentials” and cut back on leisure shopping activities. For many, especially during the first weeks of reopening, trips to brick-and-mortar retail stores will largely be purpose-driven. Brands that streamline the in-store experience for purpose-driven shoppers should be rewarded with increased customer affinity and loyalty, while brands that provide sub-par experiences will lose out.
So, what does this mean for mobile operators? Before COVID-19 upended global retail, forward-thinking MNOs were already optimizing their brick-and-mortar locations for digital-first consumers with smart retail technology. Now that stores are starting to reopen, how can smart retail tech help MNOs in a post-COVID retail environment?
Maximize In-Store Engagement
With features like content synchronization, smart retail tech helps MNOs grab the attention of purpose-driven consumers by delivering engaging video content on every device. Blank screens add no value to the customer journey and generic OEM content is less than ideal and creates in-store visual clutter. Synchronized take-over moments provide a platform to amplify current promotions by encouraging customers to interact with in-store devices, which can speed the path to purchase for purpose-driven customers looking for something specific.
Streamline the Path to Purchase at a Safe Distance
Smart retail tech also imbues display devices with interactive qualities that enable demo devices to “respond” to customer interaction and provide useful information such as device pricing, available data plans, and current promotions. By providing relevant information while a customer is exploring a device, MNOs can remove friction from the in-store customer experience while transforming each display device into an additional sales associate.
Support a Consistent Omnichannel Experience
Traditional, printed price tags are a pain to keep up-to-date and don’t advance the perception of a digitally savvy business. Plus, printing, shipping, and posting in-store price cards is a clunky process that is error-prone. With features like dynamic digital pricing, smart retail tech eliminates the headache associated with printed price tags while making it much easier to maintain pricing conformity across online and in-store channels.
Promote Business Agility
It goes without saying that COVID’s societal impact has been radical and far-reaching. For all types of retailers, it has been transformative as consumption patterns changed overnight. In our post-COVID world, being able to capture and understand rapidly changing customer behavior is paramount. MNOs equipped with the behavior-based analytics provided by smart retail tech will unlock the necessary insights to adapt and improve retail strategies in an agile manner.
Optimize Operations and Resources
The behavior-based analytics provided by smart retail tech can also be invaluable to the task of resource optimization and cost control. Digital price tags eliminate the hard cost of printed labels and streamline a low-value task to free-up time for sales associates to add value in more strategic areas. Poorly performing in-store campaigns can be quickly identified and tweaked to boost effectiveness. In a similar manner, MNOs can zero-in on effective campaigns and scale them across their footprint to maximize impact.
Perfect Planogram Strategy
Store layout is another area that can be improved with the help of the behavior-based analytics. What is the best place in the store for flagship devices? Do certain promotions elicit greater engagement if they are displayed on devices at the front of the store or back by the customer support desk? Smart retail tech can deliver this valuable insight.
Business Summary
Smith Micro Software, Inc. is a provider of software solutions.
The Company operates through two segments: Wireless and Graphics.
The Company offers multi-platform, modular solutions organized into three product families, including NetWise, CommSuite and QuickLink. For mobile network operators, NetWise helps reduce cellular congestion and optimize data traffic across third-generation (3G), fourth-generation (4G) and wireless fidelity (Wi-Fi) networks.
Graphics segment includes its consumer-based products, such as Poser, Anime Studio, Manga Studio, MotionArtist and StuffIt.
The Graphics segment develops a range of software, including graphic design and animation, compression and personal computer (PC)/Mac utilities, for consumers, professional artists and educators.
The Company also offers Family Safety platform for family locator and parental controls.
Shayne Heffernan Trade Idea
“Our current price target of Smith Micro Software will come in around $8.38 giving the stock a price increase of +89.59%.”
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Downwards.
The projected upper bound is: 4.96.
The projected lower bound is: 3.86.
The projected closing price is: 4.41.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 16 white candles and 31 black candles for a net of 15 black candles.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 41.4634. This is not an overbought or oversold reading. The last signal was a sell 16 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 46.35. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 71 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -85. This is not a topping or bottoming area. The last signal was a sell 13 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 10 period(s) ago.
Rex Takasugi – TD Profile
SMITH MICRO SOF closed down -0.160 at 4.420. Volume was 507% above average (trending) and Bollinger Bands were 62% narrower than normal.
Open High Low Close Volume 4.580 4.656 4.400 4.420 4,703,463
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 4.55 4.57 4.85 Volatility: 53 76 88 Volume: 962,704 759,504 648,009
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
SMITH MICRO SOF is currently 8.9% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
Our volume indicators reflect volume flowing into and out of SMSI.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on SMSI.O and have had this outlook for the last 13 periods.
Smith Micro Software, Inc. (NASDAQ:SMSI) Buy on Dips added by HEFFX on
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