SYNC Could Bounce 25%-50% Tomorrow
Jonathan Lebed Newsletter
Just like Yelp (YELP) has fallen by $6.85 or 26% from $25.85 to $19 over the past 7 trading days for no reason other than anticipation of its share lock-up expiration scheduled for August 29th, which is still a full week away…
Synacor (SYNC) sold off by $3.31 or 26% from $12.96 on July 25th to $9.65 on August 10th in anticipation of its share lock-up expiration that was scheduled for August 13th. After SYNC`s share lock-up expiration on August 13th, a few venture capital investors such as Rand Capital (RAND) who had been holding their SYNC shares for over 6 years, desperately needed to sell their shares to raise cash and pay off debt.
SYNC declined by another $2.15 or 22% from $9.65 on August 10th to a low yesterday of $7.50, but is beginning to recover nicely today. SYNC appears to have already seen its bottom and I calculate that SYNC`s resistance will be completely gone tomorrow. I expect SYNC to bounce to $9.65 by the end of this week and to $12.96 next week, before rallying to new highs above $18 within the following 30-90 days.
SYNC has 27 million shares outstanding and prior to the lock-up expiration had 8.3 million shares in the float. The lock-up expiration made the other 18.7 million shares unrestricted, but 10 million of them are held by insiders and with no form 4s filed, we know for sure no insiders are selling! This leaves 8.7 million shares with the potential to be sold. SYNC over the last 8 trading days following the expiration of its share lock-up agreement, has traded 7.6 million shares! This leaves only 1.1 million shares of potential resistance left before SYNC explodes like crazy to the upside! I expect SYNC to easily trade 1.1 million shares between now and lunch time tomorrow.
SYNC could easily reach $9.65 tomorrow afternoon (its price before the lock-up expiration) and then rally to $12.96 next week (its price before 2Q results when it began selling off in anticipation of the lock-up expiration).
SYNC was just added yesterday evening to the brand new Inc. 5000 list of America`s fastest growing companies with 3-year revenue growth of 73%! SYNC`s huge revenue growth has been rapidly accelerating, with revenues in the first 6 months of 2012 up 61.1% over the same time period last year: http://www.inc.com/inc5000/profile/synacor SYNC`s full year 2012 revenues are expected to be $124 million up 36% from 2011 revenues of $91.1 million. This compares to 2011 revenue growth of 38%, 2010 revenue growth of 9%, 2009 revenue growth of 16%, and 2008 revenue growth of 32%! SYNC will be one of the few companies to see its ranking on the Inc. 5000 list rapidly improve in the years ahead. After this year, their 3-year growth rate will increase from 73% to 104% and after next year it will increase to 134%! SYNC is extremely profitable with profits growing much faster than revenues! Both SYNC`s EBITDA and net income grew 100% last quarter on a year-over-year basis! In fact, SYNC generated $4 million in positive cash flow from operations in the 2Q of 2012 up 344% from operational cash flow of $0.9 million in the 2Q of 2011! SYNC will have some resistance at $12.96, but when SYNC reaches $12.96 I expect its institutional interest to start rising dramatically. Goldman Sachs and Credit Suisse began accumulating large positions last quarter. By institutions accumulating SYNC and holding onto their shares tight, SYNC`s actual float available as supply in the market will effectively shrink dramatically and SYNC will recover to $18 and reach new highs above $20 in the upcoming months! I was right about SYNC doubling within 3 months of my May 2nd profile of $8.84 up to a high of $18 and SYNC would be $20+ right now if not for the newly unrestricted shares from the lock-up expiration that needed to be eaten up as well as the stock being naked shorted beforehand.
Check out this link: http://www.regsho.com/tools/short_list.phpssd120821 SYNC has been on the regulation SHO list for 11 trading days, meaning it was naked shorted on August 1st, the day it fell $0.87 or 9% from $9.73 down to $8.86. After being on the list for 13 trading days, the naked short sellers are forced to cover. This means we will likely see massive short covering these next couple of days! SYNC right now is artificially low and about to make the biggest bounce that the market has seen in 2012! After SYNC bounces back to at least $12-$13, I will be announcing two new TV Everywhere picks! SYNC is my #1 favorite TV Everywhere stock and I don`t want to distract from SYNC by announcing any new picks when SYNC is without a doubt the #1 biggest opportunity in the market today for the short, medium, and long-term, at its current dirt-cheap fire sale prices! Today is the last day to accumulate before the resistance is gone and the biggest bounce of 2012 begins! Watch where SYNC goes tomorrow! I will copy and paste this paragraph into my alert tomorrow evening after SYNC starts to skyrocket back to where it belongs! —– I have not been compensated for SYNC but a firm that is owned by a client of mine who refers investor relations business to me owns 478,427 shares of SYNC that it intends to sell and can sell at any time. Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to: http://lebed.biz/disclaimer.htm Jonathan Lebed Lebed.biz Staff This message was sent to from:
Jonathan Lebed | 350 Ramapo Valley Rd | Oakland, NJ 07436
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