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Synchronoss Technologies, Inc. (SNCR)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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2.8400-0.0400 (-1.39%)
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  • J
    James
    Eerily quiet on this board the last three weeks
  • B
    Blue
    Finally the refi is done! They are able to raise the optional amounts also. This should provide good buffer to grow this company.

    Old Cap Structure
    SIRIS: 280M
    Credit Line: 10M
    Total: 290M
    Interest: 40+M and more in subsequent years.

    New Cap Structure
    Notes: 125M
    Preferreds: 75M
    Stock offering: 110M
    Total: 310M
    One time Fees/Discounts/Etc: ~15M
    Interest: 17.5M for 1st year and more in subsequent years but not as bad as old cap structure.

    Cash (3/31): 30M including 10M revolving credit.

    New Cash after the offering= 30 + 310 - 15 - 290 = 35M approx

    Another difference between SIRIS and B Riley is the attitude. SIRIS never showed public support to the company.

    On other hand because B Riley has interest in common shares... "“We are pleased to serve as a strategic partner and financial sponsor to Synchronoss on this capitalization and are committed to leveraging the full operational and financial capabilities of our platform to support Synchronoss in its strategy to deliver value..”

    So, it is a positive from long term big picture perspective.

    Now, it is up to CEO to grow this company with material deals instead of fluffy deals. They should close some new deals or replace the sales leadership including the CEO and the board members. B Riley will put some heat if the CEO does not deliver soon.

    As always, good luck folks!
    Bullish
  • B
    Blue
    Canaccord 5-star analyst Michael Walkley note:

    "We view the valuation as a compelling opportunity as management executes on its turnaround plans, implements additional cost savings, announces new customer wins, and increases its recurring revenue mix. In the event management continues to execute and margins expand consistent with our 2021/2022 estimates, we believe the multiple could expand closer to peer multiples at ~3x EV/revenue. Even if the multiple expands to 2x EV/ revenue on our 2022 estimate and reaches our $8 price target, this would generate meaningful upside to the current share price... With several Cloud deals anticipated to contribute to growth in 2021 and beyond, sustained growth potential at Verizon, which renewed its White-Label Personal Cloud Platform for 5 years, and strong annual RCS revenue contributions anticipated from US carriers and Japanese deals, we believe there are several strong building blocks to support our estimates," Walkley opined.
  • B
    Blue
    I believe this is a better deal than staying with SIRIS.

    With SIRIS:
    Pay 14.5% interest
    Cannot pay part of principal
    Cannot do any acquisitions
    Dilution of $9M per quarter via PIK preferred shares
    3 board members

    Without SIRIS:
    Less than 14.5% interest
    Can pay principal in piece meal
    Flexibility on acquisitions
    1 board member
    $100 dilution on commons to take out $100 million 14.5% preferreds.

    The business growth will be same or better without SIRIS. They can do acquisitions etc. The cash flow should be better than before.

    BRPI is investing $100+ million even after knowing the old SEC action which will most likely result in simple settlement. If you remember the amount that was restated was less than 5% of the revenue. The revenue amount was present but was not recognized in correct quarter.

    Glad that the CEO took action finally. If the CFO is a rock star, he would have closed this deal in August 2020 instead of waiting until now.

    This stock is around $3 on average for last 12 months. So, it better to take care of preferreds now than wait.

    Is this stock going to go to $10 in 1 month, most likely no. But, the capital structure allows it to reach there in future.

    Good luck to longs!
  • J
    James
    Has SNCR entered the realm of Robinhood, Reddit stock trading enthusiasts? Massive volume the last two trading days with a strong price uptrend has drawn a lot of attention. Quite interesting and worth following during the next few days/weeks. I’m curious if more will be drawn to SNCR if the volume keeps at a high level. Nothing like FOMO taking hold as the numbers rise. Congrats to the SNCR bulls, it’s been a long and difficult road….
  • B
    Blue
    BRPI has indicated an interest in purchasing a minimum of $40.0 million of the shares of common stock to be offered in our concurrent offering of common stock

    BRPI has agreed to purchase $75.0 million of our Series B Preferred Stock

    $120,000,000 aggregate principal amount Senior Notes
  • c
    catch87
    Reiterated buy ratings on 6-24-2021- Roth Capital with $9.00 PT and Ladenburg Thalmann $7.40 PT. SNCR is oversold and undervalued easy double by year end IMO.
    Bullish
  • L
    LongLongInvestor
    Once the second offering is completed, we don’t need to pay that high dividend, we should have positive earnings next quarter.

    Moreover, new contracts are coming.
    $9 is not a dream.
  • J
    John
    heavy put volume not sure about this one :(
  • L
    LongLongInvestor
    If SNCR can make 10 cents per share at each quarter, this will be a $10 stock with PE 25.

    If we are lucky that SNCR take major new contracts and make $0.2 per share per quarter, this will be $20 stock with PE.25.

    With the 5G full deployment, and EV and smart building getting popular, definitely more cloud businesses are required, I bet the earning 20 cents is not a dream.

    Thus, SNCR is a $20 stock in a year.
  • B
    Blue
    Verizon cloud is stable and growing 1% every month. 4 more years of locked contract at min.
    AT&T cloud started to grow. All other baseline business is good.

    The guidance is confirmed again.

    They closed a new RCS and cloud deal in Asia.

    CFO going back and joining spark networks. He has dating sites experience and now he is joining same group again.

    They are kicked out of russell because the threshold market cap is most likely not met. There are lot of companies with worst financials where the market caps are high this year because of fed.

    I think the company will be fine. Just bad luck.

    Hopefully they will turn around.
  • G
    G
    that's actually good news, it will eliminate 14 % preferred shares. issue debit will be due in 2026 which is $120M. not bad at all. now they good CFO and grow their revenue.
  • G
    G
    guys let's not sell any stock until this hits $6. if we all decided not to sell even 1 share until it hits $6. that's almost triple your money 💲💲💲
  • c
    catch87
    Do we have lift off. Looking to hire accomplished CFO to lead CO. to the next level. PT $6.00+ IMO.
    Bullish
  • L
    LongLongInvestor
    Mmm, current price $2.91 and offering price is $2.60. I believe the offering should be closed pretty soon. After that, the sp should be back up abruptly.
  • B
    Blue
    The whole shares will be diluted like crazy scare campaign by bears... keep in mind that chairman, board member, the CEO and other executives all have decent amount of shares. Do you think they will approve a deal that will wipe out their shares?

    Common Sense!
    The refi will definitely have positive impact. From 2nd half of this year, this company will be cash flow positive. Worst case, that will buy more time for refi if needed.At 2.51, it is no brainer to keep or buy this stock.AMC is trading at 60 dollars. I call that as over valued. Good luck to longs
  • R
    Richmond
    One last push maybe?
    Bullish
  • B
    Blue
    iShares Russell 2000 ETF 862,152 shares
    iShares Russell 2000 Value ETF 449,835 shares

    In total, 1.3+ million shares will be sold which in all likelihood is already done based on recent volumes.
  • P
    Paul
    Everytime I buy stuff the price drops lol, FML
  • S
    Steven
    From what I'm reading the direct offer is around 3.65 a share. Give or take. The offering is open to when they decided. I'm buying a small portions. If direct offer is 3.65 has to be something coming. Glta