Investment Thesis
Based on analysts' consensus EPS estimates, Smith Micro (SMSI) earnings will still be below 2019 levels at end of 2021, which is the extent of estimates. Of more concern is the overstatement of headline EPS by exclusion of the cost of employee stock compensation expense. This overstatement is turning losses into profits, and is likely reflected in analysts' EPS estimates, making the outlook appear far more attractive than the reality. I am taking a contrarian approach to this stock, with a 'Very Bearish' rating, in contrast to Wall St. analysts' rating of 'Very