NEW BULLISH Plays
Synchronoss Technologies - SNCR - close: 45.37 change: +0.91
Stop Loss: 42.89
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on October -- at $---.--
Listed on October 02, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 479 thousand
New Positions: Yes, see below
Why We Like It:
The smartphone is becoming more and more ubiquitous. There were one billion smartphones sold in just 2013. Today's consumer is putting more and more of their selves and their data on their smartphone.
What happens to all that data when a user loses their phone? Wireless companies have started storing user data in the cloud to solve that problem. SNCR is one such cloud solution provider to big wireless carriers.
The company website says "Synchronoss founded in December 2000, is a world leader in cloud solutions and software-based activation serving communication service providers across the globe. Our proven and scalable technology solutions allow customers to connect, synchronize and activate connected devices and services that empower enterprises and consumers to live in a connected world."
SNCR is also offering their cloud services straight to consumers. This has grown to millions of subscribers.
The company has been consistently beating Wall Street's earnings estimates. The last three quarters in a row have seen SNCR beat both the top and bottom line estimate. Revenues have been averaging +27% growth over the last three quarters. Its revenue growth for its cloud services has been growing about +75% (year over year) the last three quarters in a row.
This huge growth has helped lift shares of SNCR to multi-year highs. Shares have been relatively resilient during the market's current pullback. Traders bought the dip today and SNCR displayed relative strength with a +2.0% gain on Thursday. The stock looks poised to breakout and if that occurs shares could see some short covering. The point & figure chart is bullish with a $53 target.
Tonight we're suggesting a trigger to open bullish positions at $46.10.
Trigger @ $46.10
- Suggested Positions -
Buy SNCR stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the DEC $50 call (SNCR141220c50) current ask $2.10
Option Format: symbol-year-month-day-call-strike