Why I Reduced my Position in SMSI ahead of Next Week’s Apple Event

9/10/18 Update: Apple didn’t release the Tracker today! That’s great news although they laid the groundwork for it. This possibility was listed as the #1 risk to the bear trade-around-a-core position noted below. My trade plan was well executed ; risk-off going into the event and immediately went risk-on, buying back some of my core […]

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3 responses to “Why I Reduced my Position in SMSI ahead of Next Week’s Apple Event”

  1. Mirdad Mirdad says:

    Just want to be clear for all of your readers that like you stated in the small print at the top of the article this is your opinion but NOT the opinion or action from the rest of the Story Trading group. Personally, I don’t blame anyone to sell part or all of their shares if they want to gain a profit or are concerned about the overall market etc. However, the concern you have about Apple entering into the Tracker market is not well thought out and appears to be a knee jerk reaction. First of all, unless Apple gives away their tracker for free I doubt it will be a big seller as they are usually way over priced. Two, Smith gains the lions share of their revenues from Android devices. Three, Apples entry will just bring more attention to Sprint’s Tracker (SMSI) and will increase visibility therefore more sales. Lastly, I know that Ben is still long the position and your intent is to time a possible market sell off due to Apple entering the Tracker space but I think this is reckless gambling at best. Why sell off a portion of your best stock in order to time a market event that might be a non event? Even if the stock miraculously sold off 20% it will just bounce right back. The infamous run up to earnings is coming up next month…….I sure would not want to miss out on that. I’m holding my entire position at least through earnings as I know earnings will beat the analysts expectations by a ton. In addition, unless I hear a good reason to sell after earnings I’ll most likely hold on as the following earnings call will be even better as it will have back to school revenues baked in. This is a $15 to $20 stock by Q1 or Q2 and you are talking about reducing your position? Makes zero sense to me. And to be clear, I’ll be holding this stock indefinitely UNTIL I see a REAL material event that will cause me to sell. I guess we just disagree that a material event of Apple entering the Tracker space is a negative. Actually, again, a big thanks to Apple if it happens as it will spur on more sales for SMSI through BOTH Android and iOS.

  2. Tennis14 Tennis14 says:

    Storytrading, I totally agree with Mirdad. I bought more than six figures in shares due to Marks research. This is not the time to sell or play games. Your own previous research should tell you as much.

  3. Snowbird Snowbird says:

    Glad I listened to the thesis. Stock went down and took advantage of the dip. Will there be another? We will see. Great article!

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