Socket Mobile, Inc. (OTCMKTS:SCKT) Makes A Small Jump Before the Holiday
On Wednesday interest towards the stock of Socket Mobile, Inc. (OTCMKTS:SCKT) spiked significantly and the company saw nearly 100 thousand of its shares being exchanged. The volume is among the biggest registered by the company since the start of the year while the corresponding dollar value for the session reached $221 thousand. The increased buying pushed the stock to a high of the day of $2.70 almost breaking the 52-week high of $2.75. Such prices were short-lived though and at the time of the closing bell the stock was standing at $2.31 for a gain of 5%.
SCKT sells cordless barcode scanning devices and has over 1000 software application developers. Their business seems to be growing steadily and the company’s finacials are quite encouraging. The latest quarterly report revealed that at the end of September they had:
- $739 thousand cash
- $3.4 million total current assets
- $6.4 million total current liabilities
- $4.9 million revenues
- $452 thousand net income
As a whole the balance sheet shows a lot of improvement. SCKT’s cash reserves increased by more than a $100 thousand compared to the start of the year. The amount of current assets increased while at the same time the current liabilities got lower. But the most impressive result was registered under the revenues line – compared to the same period last year revenues jumped up by nearly 50%. The fact that the company actually finished its latest quarter with a positive bottom line is enough to speak for itself.
There are a couple of weaknesses though. Nearly half of the reported current assets consist of accounts receivable. SCKT also have a massive working capital deficit of close to $3 million.
For a pennystock Socket Mobile seem like a solid company. They have around $846 thousand in convertible notes but as long as warrants issued on November 19, 2010 are outstanding these notes will have a conversion price of $2.45 which is above the current market price. SCKT’s CEO and CFO will be presenting at the LD Micro Conference on December 2 and this could help the company gain more exposure.
At the moment though you must account for the limited trading volumes and adjust your trades accordingly.
