WHAT REALLY HAPPENED WITH SYNC TODAY?
May02

WHAT REALLY HAPPENED WITH SYNC TODAY?

What had previously been considered a hidden gem was suddenly discovered with an unbridled fervor that had me scratching my head in the morning. I, of course, expect the best out of every company that possesses enough qualities to grace the grounds of my managed portfolios. I do expect, however, a more dignified attitude towards value creation. In the case of SYNC, today was downright violent. It wreaked of behavior led by a band hooligans who were either uncontrollably greedy in their want of shares. Or, positive news that led to a sudden influx of new investors. I tweeted early in the morning that I suspected a fat fingered fund manager had been sloppy in his buying habits and shown his hand far too early. This turned out NOT to be the case, however. Via email, I received an urgent correspondence this afternoon informing me of a group that had released a recommendation on the stock. This group allegedly has a bevy of members who have no qualms regarding urgent accumulation in thin companies. I am not going to pass judgement on this group. I am only concerned with how they are going to influence my current investment in SYNC. You see, I originally mentioned SYNC on March 22nd when it was trading at $7 per share. I published a brief research report on the company one week later. One of the attributes I listed at the time was the fact that it was an undiscovered name in an industry that is attracting a lot of attention...that being online streaming television content. The fact that it has been discovered doesn't surprise me at all. It was expected. The value creation process from this point becomes much more complicated, however. SYNC has gone from an undiscovered value play to a momentum-driven trading stock that has already attracted a host of short-sellers. The value creation process will continue. SYNC will realize its potential. Whether that value is in the $15 range or $30 range remains to be seen. Recognize that the calm, disciplined old man you saw a few weeks ago has now turned into a tyrannical dictator with unpredictable, murderous tendencies. Volatility will be substantial from here. SYNC today became involved in a whole new ball game with a whole new cast of characters. That doesn't change the fundamental promise of the company, but it changes significantly the road map that it will take to get there. Adjust...

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