Editor's Note

When everything is working out as planned, other people notice. AT&T and Sprint both noticed.


New positions are only added on Wednesday and Saturday except in special circumstances.


SNCR - Synchronoss Tech - Company Profile

Synchronoss Technologies, Inc. provides cloud solutions and software-based activation for connected devices worldwide. The company's products and services include cloud-based sync, backup, storage and content engagement capabilities, broadband connectivity solutions, analytics, white label messaging, and identity/access management that enable communications service providers, cable operators/multi-services operators, original equipment manufacturers with embedded connectivity, and multi-channel retailers, as well as other customers to accelerate and monetize value-add services for secure and broadband networks and connected devices. It also provides Synchronoss Enterprise solutions, such as secure mobility management, data and analytics, and identity and access management solutions for the financial, telecommunications, healthcare, life sciences, and government sectors; and Synchronoss Personal Cloud platform that delivers an operator-branded experience for subscribers to backup, restore, synchronize, and share their personal content across smartphones, tablets, computers, and other connected devices. In addition, the company offers software as a service for the organizations to securely manage, control, track, search, exchange, and collaborate on sensitive information inside and outside the firewall. Its products and platforms are designed to enable multiple converged communication services to manage across a range of distribution channels, such as e-commerce, m-commerce, telesales, customer stores, indirect, and other retail outlets. The company markets and sells its services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was founded in 2000 and is headquartered in Bridgewater, New Jersey. Company description from FinViz.com.

Expected earnings May 15th.

SNCR just completed the sale of $185 million in newly created preferred stock to Siris Capital Group. SNCR exchanged 185,000 shares of series A convertible preferred stock for $97.7 million and 5,994,667 shares of common stock, which represented 12.6% of the outstanding shares. Basically Siris exchanged their 12.6% stake in the company and $98 million for the right to put two members on the board and reap a profit if SNCR shares hit $18 and their shares convert.

SNCR gets to use the $98 million to expand their business. Within days both AT&T and Sprint announced they were partnering with SNCR to exploit their IoT cloud technology on their respective networks. These are not small companies. This is a major breakthrough for SNCR.

The stock surged to $9 on the convertible news then spiked to $10 on the AT&T and Sprint news. Shares pulled back slightly in the weak market but are likely to move higher when the market recovers. Resistance is $9.65.

Buy SNCR shares, currently $9.69, stop loss $8.45.
Alternate position: Buy June $10 call, currently $1.40, stop loss $8.25.


No New Bearish Plays