Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Having originally warned on shares in telephony-CRM integration software group Synety (SNTY) at 92.5p a year ago and most recently last month HERE, they slumped towards 60p earlier this month, but have now recovered by more than 17% to 78.5p on the back of results for the 2015 calendar year. Hmmm…
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Comments
Daniel Victor
Classic stuff – Steve Moore vs Paul Scott ! Who will be proven correct in the long run ?
Paul Scott
Hi Steve,
Funding isn’t an issue any more. A tipping point has happened – investor sentiment will now swing from concerns over financing (which were justified until recently), to excitement about 100% top line growth on nearly 80% gross margins, and the exciting operational gearing that brings.
You have to get ahead of the curve. This one is turning positive, quite rapidly I think.
The key factor is Peter Simmonds, the Non Exec Chairman, who brought with him a wealth of experience in SaaS from his highly successful tenure as CEO of DOTD. He’s really licked SNTY into shape, and today he bought 60k shares personally – OK not a huge buy, but it’s not that liquid, so maybe that’s all he could get?
Also note that Helium Rising Stars, the biggest shareholder, are steadily increasing, and are now up to 19%. Directors have in aggregate bought over £1m of stock. They’re pot committed, and this is going to work.
I see sentiment rapidly turning positive, which is why I’m a buyer – obviously talking my own book – as everyone does. Things changed here this week. Listen to the webinar with mgt too – it’s here – https://synety.wistia.com/medias/lsu58mcxgu
There are probably plenty of stale bulls in the stock, so I don’t think there’s any particular rush – but you never know. Things can suddenly swoosh up if people all get bullish at the same time. Then the stale bulls suddenly get comfortable again, and don’t want to sell after all.
My call? I think 120p could happen quite quickly. Then consolidation. I think we’ve put in the low.
Just a personal view, DYOR as usual. I’ve been wrong on this stock to date, so ignore what I say!!!
Best wishes, Paul.
DeepPurple
Paul
StockRanks rates this as a 9. No value , no quality, little momentum. Who to believe.