Interesting news today. Seems to have caught a lot off guard...

Interesting news today. Seems to have caught a lot off guard with mixed sentiment on good vs bad.

A CR generally get s bad rap - mainly for businesses that are struggling, burning through cash like no tomorrow and continue to hit the market up for more.

SYT doesn't appear to fit this category.

Yes, they reduced their initial CR via IPO and this was the right thing to do if they didn't believe they needed it. As per the comments from a lot of others on this thread, something unexpected and unplanned must have occurred over the last 2 months. The most likely is that they didn't expect such strong demand for their product, even though they had a plan and budget and forecast (internally), this can never be predicted with any certainty.

The reason why I lean towards more upside/positive CR purposes is due to:
1. "Accelerated growth"
2. Something unexpected has happened (within last 1-2 months)
3. Download numbers have been increasing significantly (i.e. not low or poor take up)
4. There has been a shift to the US and perhaps this has increased costs (marketing, expansion etc).
5. Constant flow of new deals with telecoms.

...I suspect institutional/sophisticated investor take up.

For those that forget, here is a transcript of Gary's interview recently.

http://www.techknowconference.com.au/syntonic-wireless/



Bodhi_Trader