January 21, 2005
SpeculatingStocks.com Stock Pick: BSquare, Inc. (BSQR)
Stock Price: $1.22 (short-term strong buy)
We first released BSQR as a stock pick at $0.64 on October 7th as a long-term strong buy. BSQR hit a high of $1.74 on December 3rd for a total gain of 171%. We now believe BSQR has settled and is due for another run higher before earnings come out.
BSquare, Inc. is a leading global provider of software, engineering services and consulting for the smart device market. BSquare offers full solutions to Original Equipment Manufacturers (OEMs) in the handheld space by providing such licenses as Windows XP Embedded.
As we expected earnings last quarter were an improvement with net income of $208,000 on revenue of $10.6 million. This marked the first profitable quarter for the company since the first quarter of 2001. We believe the momentum is continuing and will result in another strong profitable quarter. The company just added a former Microsoft executive as the new VP of Product Management.
Going forward, the company has over $14 million in cash and no outstanding debt. There are only 27.80 million shares in the float.
SpeculatingStocks.com Target Price: We expect BSQR to hit $2.00 within the next 1-2 months.