Technology

Uncharacteristic Volatility for Schmitt Industries, Inc. (NASDAQ:SMIT)

Schmitt Industries, Inc. (NASDAQ:SMIT)

Schmitt Industries, Inc. (NASDAQ:SMIT)

Shares of Schmitt Industries, Inc. (NASDAQ:SMIT) are down over 14% just a day after the scientific instrument company hit a new 52-week high. Yesterday, SMIT stock made a new high at $2.32 when investors continued to buy the stock after two previous days of uncharacteristic large daily gains.

Schmitt Industries, Inc. (NASDAQ:SMIT)

Schmitt Industries, Inc. (NASDAQ:SMIT) designs, manufactures, and sells high precision test and measurement products for two main business segments: the balancer segment and the measurement segment. For the Balancer segment, Schmitt designs, manufactures and sells computer-controlled vibration detection, balancing and process control systems for the machine tool industry, particularly for grinding machines. For the Measurement segment, Schmitt designs, manufactures, and sells laser and white light sensors for distance, dimensional and area measurements.

Schmitt Earnings

Almost three weeks ago, Schmitt Industries, Inc. (NASDAQ:SMIT) released its operating results for the quarter ended August 31, 2017. For the three months ended August 31, 2017, total sales increased $191,116, or 6.6%, to $3,083,648 from $2,892,532 in the three months ended August 31, 2016.  Net loss was $134,098, or (-$0.04) per fully diluted share, for the three months ended August 31, 2017 as compared to net loss of $125,629, or (-$0.04) per fully diluted share, for the three months ended August 31, 2016.

SMIT Share Performance

Despite relatively positive financial results, SMIT stock did not breech the $2 per share mark until this week – almost three weeks after the earnings release. However, shares have been performing well on virtually every level. Year-to-date SMIT shares are up over 36%. They are up over 43% for the year, and up almost 20% this month.

The lack of historical volatility in the shares is mirrored by the relatively flat sales over the last five years. In 2013, sales were posted at $12.5 million, and for FY2017 sales were posted at $12.4 million. The number of outstanding shares has been consistent over the past four years as well – 3 million shares. The blemish for shareholders has been a lac k of profits. For FY2017 the company posted a per share loss of (-$0.36). The prior year the per share loss was (-$0.51) and the year before that, 2014, the loss was (-$0.03). As of today, Schmitt Industries, Inc. (NASDAQ:SMIT) has a market capitalization under $10 and no investment firms follow the stock.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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