Should You Buy Smith Micro Software, Inc. (SMSI)?

As aggregate interest increased, key money managers have been driving this bullishness. Algert Coldiron Investors, managed by Peter Algert and Kevin Coldiron, initiated the most outsized position in Smith Micro Software, Inc. (NASDAQ:SMSI). Algert Coldiron Investors had $0.1 million invested in the company at the end of the quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Smith Micro Software, Inc. (NASDAQ:SMSI) but similarly valued. These stocks are The First Marblehead Corporation (NYSE:FMD), GenVec, Inc. (NASDAQ:GNVC), Novacopper Inc (NYSEAMEX:NCQ), and LiqTech International Inc (NYSEMKT:LIQT). This group of stocks’ market values are similar to SMSI’s market value.

As you can see these stocks had an average of 4.75 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $5 million in SMSI’s case. Novacopper Inc (NYSEAMEX:NCQ) is the most popular stock in this table. On the other hand The First Marblehead Corporation (NYSE:FMD) is the least popular one with only 4 bullish hedge fund positions. Smith Micro Software, Inc. (NASDAQ:SMSI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NCQ might be a better candidate to consider a long position.