If you’re looking for an oversold stock coming off support on big volume with a strong move to close out last week, then Synchronoss Technologies, Inc. (OTCMKTS: SNCR) may be worth a close look. The stock caught some air on Friday on strong volume to break back above the very important $5/share level to fill the gap from its big July gap lower through that level.
To fuel the action, the company just announced financial results for the second quarter of 2018. Glenn Lurie, President and CEO of Synchronoss, said “We made substantial progress in the second quarter in returning Synchronoss to the path of long-term growth and overall success, including completing our financial restatement process and meeting our SEC financial reporting obligations. Moving forward, Synchronoss will focus on providing platforms that enable TMT customers to deliver compelling digital, cloud, messaging and IoT experiences for their consumers.”
Synchronoss Technologies, Inc. (OTCMKTS: SNCR) bills itself as a company that provides cloud, digital, messaging, and Internet of things platforms, products, and solutions worldwide.
Its 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.
The company also provides Synchronoss Enterprise solutions, such as secure mobility management, data and analytics, and identity and access management solutions for the financial, healthcare, and life sciences markets; 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. 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.
According to company materials, “Synchronoss transforms the way companies create new revenue, reduce costs and delight their subscribers with cloud, messaging, digital and IoT products and platforms supporting hundreds of millions of subscribers across the globe. Synchronoss’ secure, scalable and groundbreaking new technologies, trusted partnerships and talented people change the way TMT customers grow their businesses.”
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We’ve witnessed 24% added to share values of the company over the past week of action, but this action is running counter to the larger trend in the name. Moreover, the stock has seen interest climb, with an increase in recent trading volume of 17% beyond its prior sustained average level.
Lurie added, “We believe we will begin delivering substantial improvements in our financial results in the second half of 2018. We currently expect revenue to grow sequentially in the second half of the year and that we will generate adjusted EBITDA profitability and positive free cash flow for the second half. We are confident that we are positioned to return to a financial profile characterized by significant top-line growth and substantial profitability over time.”
Earning a current market cap value of $174.6M, SNCR has a significant war chest ($311.7M) of cash on the books, which is balanced by virtually no total current liabilities. SNCR is pulling in trailing 12-month revenues of $379.8M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -31.2%. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $SNCR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $SNCR, either long or short, and we have not been compensated for this article.