TARGET $2+ AFTER EARNINGS TODAY (AH)

....COMPETITORS SANM, FLEX, JBL UP HUGE TODAY BECAUSE OF AN UNPSWING IN DEMAND FOR ELECTRONIC PRODUCTS..

SMTX is expected to report strong results when it releases earnings on November 5, 2009 to follow on sector leaders JBL, FLEX, and others that have reported surprisingly strong earnings and have provided positive outlook for the first time in over a year.

This electric contract Manufacturer makes products for large customers worldwide like IBM, Dell, HP, AAPL, RIMM, MSFT, Ingenico, etc. In its last quarterly report, the company reported that it has not lost any customers only that their customers were working their inventories. Its competitors have recently reported strong earnings results because customers are starting to rebuild inventories.

Jim Cramer is very bullish on the whole sector and gave it a "Strong Buy" rating last month. SMTX has lagged behind because of delisting concerns because it is an under-1 stock. However, the company has recently received an extension by NASDAQ until May 2010.My guess is that SMTX will go well above $2 after its earnings report on November 5, 2009. The stock has already started to trend up.

Despite the very challenging conditions the last few quarters SMTX has remained cash-flow positive and has steadily its long-term debt to about $15M from over $40 million 3 years ago. SMTX through cost cutting and optimization is poised to deliver explosive earnings as the economy recovers. Two years ago it reported over 70c/share net income and the stock flew to $8

SMTX has over $200 MILLION in annual sales and trades at a Price/Sales ratio of 0.06 compared to 0.54 INDUSTRY AVERAGE and has a tiny 6 MM float. 2.5 MM of the 6 MM float is institutional owned, so the "available" float is 3.5 MM