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Synacor (SYNC) is down in recent weeks because of its IPO share lock-up expiration. It is the same thing that is holding down shares of Facebook (FB) right now. A share lock-up expiration increases the float size of a stock by freeing up the shares of certain investors whose shares were restricted for the stock’s first 6 months of trading. Because some of these shareholders invested into these companies many years ago when they were private, some of these investors have a desperate need for liquidity and are willing to sell their SYNC and FB shares at extremely low prices, just to free up cash.
Intelligent investors are loading up with shares of SYNC and FB here. Their shares outstanding did not increase due to the expiration of their share lock-up agreements and they have seen no dilution because of it. This means their share prices are down temporarily until there is enough volume to clean out the sellers. As soon as the sellers are cleaned out, I expect both of them to bounce by 50% within about a week.
SYNC initially gained from my profile price of $8.84 up to a high of $18. Now that it is trading below my profile price, it is the steal of a century. The Olympics were a watershed moment for TV Everywhere and Americans watching video streams across all platforms including laptops, desktops, tablets, and smartphones. For the rest of 2012, we are going to see countless multi-billion dollar companies invest heavily into the TV Everywhere space. Every single pay-TV giant is going to look to follow in the footsteps of Comcast/NBC by capitalizing on America’s desire for the ability to watch any TV programming, at any time, from any location, on any device.
9.9 million devices were authenticated for the Olympics and SYNC authenticated a major percentage of them. SYNC hasn’t yet publicly announced their huge response from the Olympics, but when they do I expect it to be a major catalyst that causesSYNC to take off. I expect SYNC to surprise Wall Street with very strong 3Q results due to the Olympics and for SYNC‘s 4Q to by far be a record quarter for the company.
Although SYNC is my favorite TV Everywhere, multi-platform play… I have been researching every single company in this space because I expect them all to make the biggest percentage gains for the rest of 2012. I will have several huge new TV Everywhere/multi-platform picks in the upcoming weeks that I expect to double in the short-term!
Trust me, those who load up with SYNC here will make a killing. SYNC is going back to $18. Its whole decline from $18 began due to anticipation of the share lock-up expiration. As soon as the resistance is gone, SYNC is going to rapidly bounce like no other stock we have seen. SYNC has traded huge volume all week so there can’t be much resistance left. Sometime next week I believe it will start to break out and explode!
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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 429,597 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
Posted in : Lebed.biz
