-With the recent blow-out quarter, Socket Mobile’s stock price has ran up. However, on a valuation perspective, the company is still cheap.
-Topline growth is hidden by a declining legacy business. Going forward, investors will start to see the company’s revenues grow.
-The recent swing into profitability has a high probabilistic chance of continuing. High fixed costs are gone and FCF will start to churn.
-A growth stock with a P/E ratio of ~10.00x suggests the market price is irrational.
Full analysis of the company, plus management interview can be read at: http://seekingalpha.com/article/3961340-socket-mobile-growth-stock-priced-value-play-plus-management-interview