Guys, this a repost from my question for shan on GC:
...trying to get my head around the Synety story. So far, have checked out:
- 2012 results: which are all pretty good (losses down to 1.7m as opposed to 20m in 2011; cash in hand 2.7m, but lots of necessary spending in year - including acquisition of SYNERTY itself...; couldn't see any debt)
- Website: very professional - looks like a hell of a business model. All software based; provide someone a telephonic solution and rent them the air time and then sit back and watch recurring revenues roll in (at 10 pound per user per month + call costs (which is the real earner))
- Significant share dealing: 60k shares to CEO on 10 Apr, followed by 120k to Fidelity Investments on 16 Apr...
... but I still can't quite explain the 200% rise in a little over two weeks on no other concrete news! I may be thick, but without something else to hang my hat on I am having real problems valueing this company.
Are we really saying here, that with so few shares in issue (5m only), 180k buys in the space of a few days were enough to treble the value of the stock? If that's the case, then there are lots of investors out there willing to put their faith on other peoeple's hunches. I ain't one, at the moment.
Can anyone help me out? I'd love to know more, because this is a really interesting share but I can't see how the company's value has rocketed 10m pounds in under three weeks.
Indeed it can. But a sharp move down simply provides an opportunity for canny investors to mop those shares up. Which is precisely what has happened over the past few weeks. ;-) Retrace from a 200% increase? Negligible at best.
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