short term trading week starting - 16th dec, page-32

entry for stt list

SMA ta + fa

Bitcoins and mobile payment systems in China

The ONLY bitcoin stock on the ASX

Also, the ONLY Angry Birds stock on the ASX

Technically:

Has bounced of a triple bottom support at 2c
Low volume retrace
Sitting at 50% fib retrace after slight overshoot
Strong bidding support in queue
Some kind of triangle

Fundamentally:

2.2c
$1.6 million cash
$34 million cap

SMA has a complete monopoly as the only bitcoin stock on the ASX, and also a monopoly of exposure to the iPhone app phenomenon that is Angry Birds.

Just as PSY attracts the MEMS speculation as the only stock of its kind, SMA will attract Bitcoin speculation.

(Its that line that got my header post on the SMA thread moderated for X-promotion)

I think if they mentioned bitcoins in the announcement header from 2nd Dec, SMA would have risen - but they didn't, the header was bland and probably didnt get a whole lot of reads.

SMA are involved in a 12 month bitcoin mining contract that made them $165k in the last week of November.

Allow for variables and say they make on average $95k per week, they'll generate $5 million - and as far as I can tell from the announcement, that will be clear profit, not revenue.

They paid $250k for a 50% share in the mining contract, and have stated they have zero additional expenses payable.

The price of bitcoins has fallen in the last week, but that means SMA will be able to mine more of them, so profits are hedged from any falls in the bitcoin price.

Revenue from their other activities is growing exponentially - billing services and mobile apps revenue was almost 500% higher in November than in October.

And when I use the word exponential, I mean it.

SMA has begun integration of China Unicom’s billing functionality into SmartTrans’ applications - providing billing access to an additional 273 million customers.

China Unicom is China’s second biggest mobile carrier with 22% market share.