Quick Win By The Algorithm: SMSI Regains Compliance With Nasdaq

Quick Win By The Algorithm

Smith Micro Software, Inc. develops and sells software solutions to simplify and enhance the mobile experience to wireless service providers, device manufacturers, and enterprise businesses in the Americas, Europe, the Middle East, Africa, the Asia Pacific. It operates through two segments, Wireless and Graphics. The Wireless segment offers NetWise, a policy-on-device platform that optimizes wireless quality of experience and enhances mobile customer engagement; CommSuite, which provides voicemail, voice message, and multi-language voice-to-text transcription message services to consumers through smartphones; 4D App Studio, which offers mobile app design and development services that accelerates app time-to-market and mobilizes products and services; and QuickLink, a connection manager solution for mobile connectivity. The Graphics segment develops various software products, including graphic design and animation, compression, and PC/Mac utilities for consumers, professional artists, and educators. This segment offers Poser, a software for 3D human figure design and animation, as well as for creating photorealistic images for a variety of industries; Moho, a solution used by hobbyists and professional artists working for high-end animation studios in the motion picture industry; and Clip Studio Paint, a software for comic illustration and manga creation. The company provides its products through direct sales on the company’s Websites, as well as through affiliate Websites, resellers, and retail outlets. It also offers technical support and customer services. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Aliso Viejo, California.

On May 8, 2017, SMSI received a notification from Nasdaq saying that they failed to comply with the Nasdaq’s Marketplace Rule 5550(b)(1), since the company’s stockholders’ equity fell below the minimum required of $2.5 million.

Therefore, on September 29, 2017, SMSI entered into a Securities Purchase Agreement with several investors. This agreement included the issuance and sale of 5,500 shares of the company’s newly designated Series B 10% Convertible Preferred Stock at $1,000 per share, for a total purchase price of $5.5 million. Thus, the company raised gross cash proceeds of $2.7 million and exchanged outstanding indebtedness with a principal amount of $2.8 million.

This agreement resulted in a net cash proceeds of $2.4 million raised by SMSI and in an increase in the stockholders’ equity of $5.1 million. Thus, SMSI reported on its last financial results report that the company has regained compliance with the Nasdaq rule and its stockholders’ equity balance is now greater than $2.5 million as of the quarter ended September 30, 2017.

From May 8th, 2017 until September 29, 2017, SMSI stock went up 8.74%.

Source: Google Finance

On November 15th, 2017, I Know First issued a bullish 1-month forecast for Smith Micro Software, Inc. (NASDAQ: SMSI). The forecast showed a signal of 26.50 and a predictability of 0.12. In accordance with the forecast, SMSI’s stock returned 68.51% over this period, solidifying another quick win by the I Know First algorithm.

Current I Know First subscribers received this bullish SMSI forecast on November 15th, 2017

 

Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.