NEW BULLISH Plays
Synchronoss Technologies - SNCR - close: 53.67 change: +1.55
Stop Loss: 49.75
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on November -- at $---.--
Listed on November 10, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 504 thousand
New Positions: Yes, see below
Why We Like It:
SNCR is in the technology sector. The company provides cloud-based computer solutions and software. Thirty of the biggest wireless carriers use SNCR to back up their customer data. That accounts for more than three billion mobile users. Over 300 of the Fortune 500 companies use SNCR.
The company describes itself as "the mobile innovation leader that provides cloud solutions and software-based activation for connected devices across the globe. The company's 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."
The company is a high-beta, high-growth name and the stock can be volatile but SNCR has been delivering growth. They have beaten Wall Street's estimates on both the top and bottom line four quarters in a row. Their most recent earnings report was October 28th.
Analysts were looking for SNCR to report a profit of $0.43 a share with revenues of $118.8 million. The company beat expectations with earnings up 35% from a year ago to $0.46 a share. Revenues were up +39.6% to $125.2 million.
SNCR's Founder and CEO, Stephen Waldis, commented on the quarter saying, "Synchronoss' strong third quarter financial results exceeded our expectations from a revenue and profitability perspective and were highlighted by 115% year-over-year Cloud Services revenue growth."
SNCR has an above average amount of short interest at more than 9% of the very small 34.4 million share float. The better than expected earnings results sparked a sharp rally to new all-time highs.
Shares have now spent two weeks digesting these gains and they have started moving higher again as traders buy the dips.
Today saw SNCR showing relative strength (+2.9%) and close at a record high. We want to jump on board and we're listing a trigger to open bullish positions at $54.15. I want to reiterate that SNCR can be a little volatile. Investors may want to use small positions.
Trigger @ $54.15
- Suggested Positions -
Buy SNCR stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the DEC $55 call (SNCR141220c55) current ask $1.85
Option Format: symbol-year-month-day-call-strike