Catching Up on Smith Micro
When a plan works out
Without question, Smith Micro Software (SMSI) is the most divisive name followed in the (albeit short) history of Breakout Investors. The company is not divisive in the sense of who owns or has owned the stock—our polls have consistently shown it to be the #1 owned stock by our followers. Rather, SMSI 0.00%↑ has been divisive because some of our Breakout Investors (specifically myself and Florian Buschek) vocally dared to become SMSI “heretics,” warning that the company would likely underperform the lofty expectations of SMSI investors.
Still, I have continued to follow SMSI’s progress because I believe in the possibility the company will eventually succeed with its current SafePath product offering. After all, those of us who were invested with SMSI through the Sprint Safe&Found glory days remember what can happen if a carrier decides to go all-in on promotions. I doubt I will ever forget that feeling of being up 67% in one day!
At the same time, successful investing requires us to be logical and to set aside any emotional distractions. For many, this has proved to be a difficult task with SMSI. Nevertheless, I developed what I believed to be a rational plan with SMSI and, so far, I have stuck to that plan and it has worked out well. That said, I am only part way through my longer-term plan with SMSI, and that plan has now entered Phase 2, which I want to share with our subscribers.