The expected August 1 financial update is likely to show SMN as...

The expected August 1 financial update is likely to show SMN as being cash flow positive when the prior quarter included a $315,000 one-off payment to Tulip Bay& an $850,000 increase in inventory is taken into account.

A rundown in inventory culminating with an increase in sales should make SMN being cash flow positive a possibility.

The CVM™ equipment,sales pipeline related to both the 737-NG Aft Pressure Bulkhead (“APB”) and WiFi programmes, should make the current 5.2% of sales over forecast look rather pedestrian.

Once the company becomes cash flow positive it will only be a matter of time before dividends become a reality. The only negative is the delayed payment from Delta & it depends on how this is treated in the financials. It may delay the positive cash flow but it should increase the profitability.

Irrespective of when SMN shows an actual positive cash flow, overall profitability is not far away & that should mean a rise in the share price.