The 10K came out today--all looks very good. The more I look at the facts, versus emotion, the more I realize what a complete overreaction to last quarters results were, Lenovo and Toshiba accounting for flat to slightly higher 2013 guidance primarily is what all the ballyhoo was about.
First, Lenovo was never priced into the stock so that's a non-starter. Second, Toshiba's news as second start page isn't great but a 50% haircut to the companies entire value for that is just ridiculous emotion. SYNC didn't lose revenue because of the 1 year windows arrangement Toshiba has with Microsoft. It just won't help them grow revenues with Toshiba this upcoming year. They still share all the same revenue with Toshiba from previous quarters--it'll just slow their growth with them over this upcoming quarter.
Second, what happens to SYNC revs if and when Lenovo and Toshiba possibly puts SYNC as the start page first again! Yup, revs and earnings will grow with just that.
3rd, this all proves to me without doubt that another big customer win for SYNC (and their definitely could be one) will send SYNC into the stratosphere since the Toshiba news wasn't huge to begin with!
4th, DISH is a newer customer. As DISH lands new customers, we should see some nice growth with that in Latin America, etc. (that's where DISH is really growing).
5th...what happens if SYNC also lands Dell?
In other words, there are a lot of possibilities for profitable growth from here. And the company is working at it. Profitable growth companies don't sell at current years 4.5X EBITDA/EV. On any of the aforementioned developments you will see at least a 50% surge in SYNC in a matter of days.
I'm looking forward to the future with this company. They are on their way! The key is a few new customer wins!
DISH is a newer customer. As DISH lands new customers, we should see some nice growth with that in Latin America, etc. (that's where DISH is really growing).
HOW about Nextel and Sprint? I bout some
Dish Network came along, garnering enough confidence in the already complicated mess of buy-outs, to offer a far higher bid for Clearwire for $3.30 per share, or $5.15 billion — completely trumping Sprint's bid.
The Dish—Clearwire bid was unsolicited and unexpected, and despite the fact that Clearwire wasn't fielding offers from other companies. Clearwire said in a statement, knowing full well that 51 percent of its shares were already owned by Sprint, that while it would consider Dish's bid, it was "severely limited by its current contractual arrangements" with Sprint.
And Sprint wanted Clearwire badly, and likely wasn't going to allow Dish muscle in and take what it wanted. After all, for Sprint, gaining spectrum and a boost in customer numbers was far more important than any further cash injection it could receive from Dish's offer.
The Softbank—Sprint deal would still have to be approved by the U.S. Federal Communications Commission (FCC), however. Knowing this, Dish asked the FCC if it would hold off its review of the Sprint—Softbank deal, which would kill any chance of Sprint receiving the much-needed $8 billion in capital to buy Clearwire. This would give Dish enough room and space to buy Clearwire, and Sprint could do nothing about it.
Relax Al, runs right, I like this guy better than the pesamistic Al. One day soon this sucker gonna pop on some favorable developements and there wont be anymore looking back. That is why I beleive you see money going in here on negative markets, because the right people know this is a sleeper, BUT it will one day soon wake up and kick #$%$.
I am disappointed in the stocks performance. I have tried to contact the company on two occasions, and they haven't the courtesy to reply or call as I have requested. I thought the stock had great potential, but I am afraid the naked shorts are killing this market, IMO.
I like your analysis of the 10K. The recent price drop has been painful to say the least, and your positive outlook is refreshing.
I have been debating on buying more at these levels. I think I will wait for one more good news release before I make my buy.
Sentiment: Strong Buy