Read on Twitter
Y'all want to see what corporate governance "dark arts" can look like in micro/nano cap land?
Let me introduce you to $SCKT which just popped 538% (and as high as 980% intraday) to $20.68 from $3.24 after announcing a barcode scanner for iPhone 12. https://markets.businessinsider.com/news/stocks/socket-mobile-stock-soars-on-durasled-scanner-iphone-12s-2021-2-1030089014
Let me introduce you to $SCKT which just popped 538% (and as high as 980% intraday) to $20.68 from $3.24 after announcing a barcode scanner for iPhone 12. https://markets.businessinsider.com/news/stocks/socket-mobile-stock-soars-on-durasled-scanner-iphone-12s-2021-2-1030089014
First a disclosure. I'll dabble in small caps, but I generally don't like to spend time in the micro/nano caps. Personal decisions. Things whipsaw way too much for my liking down there.
I didn't trade this, but the "story" is pretty straightforward (IMO)...let's goooo
I didn't trade this, but the "story" is pretty straightforward (IMO)...let's goooo
Before we dive in, it's good to have a general big picture understanding of what moves the stonk here.
It's around their iPhone news flow. Knowing this, we're aware Apple announced their iPhone 12 in October 2020. https://www.apple.com/newsroom/2020/10/apple-introduces-iphone-12-pro-and-iphone-12-pro-max-with-5g/
It's around their iPhone news flow. Knowing this, we're aware Apple announced their iPhone 12 in October 2020. https://www.apple.com/newsroom/2020/10/apple-introduces-iphone-12-pro-and-iphone-12-pro-max-with-5g/
The timing of the iPhone 12 is useful in that you know companies like $SCKT are planning for this
There are lead times involved to coordinate your own releases with when Apple is releasing their new iPhone
So if Apple is announcing in Oct, your roadmap is known leading up to it
There are lead times involved to coordinate your own releases with when Apple is releasing their new iPhone
So if Apple is announcing in Oct, your roadmap is known leading up to it
So let's go to the summer of 2020!
Company launches 2 barcode scanners and the stock pops 52% July 27 to $2.22 from $1.46. Awesome right?!
Welp on July 30 they announce 2Q earnings and the stock sells off 25% to $1.75. https://seekingalpha.com/news/3595072-socket-mobile-launches-two-barcode-scanners-shares-up-30_7-premarket
Company launches 2 barcode scanners and the stock pops 52% July 27 to $2.22 from $1.46. Awesome right?!
Welp on July 30 they announce 2Q earnings and the stock sells off 25% to $1.75. https://seekingalpha.com/news/3595072-socket-mobile-launches-two-barcode-scanners-shares-up-30_7-premarket
Mind you, this is the summer of 2020 and again they have a roadmap they're making progress on for the iPhone 12.
So what happens?
On August 31 the company announces a convertible note offering where insiders participated in the financing.
https://www.sec.gov/Archives/edgar/data/944075/000094407520000029/form-8k0831.htm
So what happens?
On August 31 the company announces a convertible note offering where insiders participated in the financing.
https://www.sec.gov/Archives/edgar/data/944075/000094407520000029/form-8k0831.htm
This convertible note converts at $1.46 and the CEO purchases 119,863...
Oh by the, let's go ahead and give an off-cycle RSU grant of 45,770 as well.
Like I say, always pay attention to large off-cycle grants to insiders.
So what happens afterward?
https://www.sec.gov/Archives/edgar/data/944075/000094407520000033/xslF345X03/primary_doc.xml
Oh by the, let's go ahead and give an off-cycle RSU grant of 45,770 as well.
Like I say, always pay attention to large off-cycle grants to insiders.
So what happens afterward?
https://www.sec.gov/Archives/edgar/data/944075/000094407520000033/xslF345X03/primary_doc.xml
Well...some really good news flow happens for $SCKT
First, they announce earnings on October 23 and the stock pops 75% to $2.55 per share. https://seekingalpha.com/news/3625213-socket-mobile-up-76-on-q3-jump-in-profitability
First, they announce earnings on October 23 and the stock pops 75% to $2.55 per share. https://seekingalpha.com/news/3625213-socket-mobile-up-76-on-q3-jump-in-profitability
And then on October 28, they announce they achieved Apple Pay compatibility popping the stock another 20%+ to $3.08. https://seekingalpha.com/news/3627174-socket-mobile-share-jumps-40-pm-on-socketscan-achieving-apple-pay-compatibility
Ok at this point you think things are great!
Insiders proceed to register the convert shares in November 2020, but interestingly...don't really sell despite the magnificent run.
hmmm...is there more news? Who knows but the stock bounces around into 2021
https://www.sec.gov/Archives/edgar/data/944075/000094407520000046/socket_424b4.htm
Insiders proceed to register the convert shares in November 2020, but interestingly...don't really sell despite the magnificent run.
hmmm...is there more news? Who knows but the stock bounces around into 2021
https://www.sec.gov/Archives/edgar/data/944075/000094407520000046/socket_424b4.htm
On Feb 1, 2021, we see a Form 4 granting 25,000 RSUs to the CEO.
That's interesting. They've already shown a propensity of doing well-timed grants in 2020 and by the way they historically granted annual equity AFTER the quarter.
Spring load?
https://www.sec.gov/Archives/edgar/data/944075/000094407521000005/xslF345X03/primary_doc.xml
That's interesting. They've already shown a propensity of doing well-timed grants in 2020 and by the way they historically granted annual equity AFTER the quarter.
Spring load?
https://www.sec.gov/Archives/edgar/data/944075/000094407521000005/xslF345X03/primary_doc.xml
Welp, I think we know the answer to that because on Feb 16 they announce scanners for iPhone 12 and the stock goes parabolic.
Bravo $SCKT insiders. https://www.socketmobile.com/about-us/news-room/press-releases/socket-mobile-launches-first-enterprise-grade-scanners-for-apple-iphone-12-series
Bravo $SCKT insiders. https://www.socketmobile.com/about-us/news-room/press-releases/socket-mobile-launches-first-enterprise-grade-scanners-for-apple-iphone-12-series
So there you have it...if you're working on product that interacts with iPhone 12 or any Apple product, you're working on compatibility and your roadmap well ahead of time.
You have A LOT of visibility when deciding to do an insider financed convert and equity grants
(fin)
You have A LOT of visibility when deciding to do an insider financed convert and equity grants
(fin)
