Short Term Trading Week Starting: 3 Oct

Hope you don't mind me reposting this from Weekend thread; posted it quite late just before close. Ta

Unraveling the enigma that is SYT (and why it is about to re-rate).

This post is an attempt to unravel some of the mystery about SYT. One would wonder why it is necessary to do so with a stock that is doing so well, but I constantly hear about the difficulty in understanding it, especially the financial model, and even the tech itself. And what STT lover would buy a stock that she neither understands its core business and/or its business model? (Today a personal trading friend told me he didn't understand the tech, and @Diver Dan said he had trouble comprehending the business model. And trust me, if DiverD has trouble understanding anything, especially regarding trading, then you can bet your grey matter that it is complicated).

Firstly, as you all well know, I am no gun trader. I do have a passion for technology and work with it intimately (not necessarily internet). But neither gun trading nor tech expertise are necessary conditions to recognize this masterpiece; it is sufficient just to have a little insight into both, but insight that can see into the basics of a system. The system here is sponsored data, not an overly difficult concept in itself, but one that we are not intimate with, and in this case, especially its monetization process. And if you can't see this, then you can't calculate how much it will earn. Also, not knowing the technology adds to this difficulty. Rap all this up in the uncertainty of tech stocks, over hyped apps, and little to no comparable peer, and you have the code for an enigma blocking any ability to see the potential in SYT. But of course, all this hasn't stopped all buyers, like State Capital, who made it their largest buy by volume in September. And of course mums and dads are buying too. If you read closely the Herald Sun's Shares Race that SGB posted above, you will read that the leading tipster is where he is thanks to SYT.

Before identifying the monetization process, consider Friday's announcement. It is always good that a company employs good Directors etc, but in this case we should take serious note.

From the CEO: “As we continue to ramp up expansion efforts into international markets, it’s imperative that we complement our leadership team with highly experienced mobile veterans with the industry acumen to take us to the next level.'

You can read yourself who these industry experts are, but what is important are the phrases, ramp up expansion efforts into international markets, and 'take us to the next level.' These phrases must be read in conjunction. SYT is about to expand into new markets and very, very quickly: Middle East and Africa. The new Director, Chris **riel is an expert in these areas and has an extremely successful track record operating there by turning million dollar companies into billion D C's.

How is it possible to expand into these places very quickly. This is the beauty of their technology, the Connected Service Platform that drives both Freeway and Dataflex. The CSP allows every other app to co-exist instantaneously without modification, that is, if you want your app hosted by Freeway, you can do so as quickly as you can sign the contract, not withstanding Syntonics inspection appraisal. This simplicity is what enabled Verizons exiting FreeBee Perks program to now be operated by the CSP, and the same for White Labeling by the likes of Tata (presently rolling out) in SEA.

But I am getting ahead of the process here; why should other apps get on the CSP? First consider why Tata is White Labelling it, and why Verizon are using it. It is because of this: the CSP is the only credible 'operating system' able to launch sponsored data quickly and reliably, and sponsored data is going to become very, very big business very soon.

Why is sponsored data going to be a raging success. Below are just a few stats. You have probably read the prospectus, but if not:

2.0 billion people ration their data use: Africa 96%; Continental Asia 87%; Asia Pacific 80%; Latin America 82%; Europe 50%; Nth America 25%. http://hotcopper.com.au/threads/ann-syntonic-investor-presentation-syt-ax.2817166/#.V_D7P_B9600

Is this just glossy marketing? No! This is where some vision is required, but the success of the pilot launch in Malaysia and Indonesia is a sign of what is to come for those who want hard evidence. But stop right there. You don't need hard tangible evidence if you have the necessary insight. Ask yourself this: if your present data consumption (if you could afford to connect; you come from the poorer part of the world) consumed 7% of your income, would you use free data if offered? Is this free data easily accessible? Yes. Does it come with unwanted strings attached? No.

How and why is data becoming free? It is because the data makers (content providers - app developers) are making bigger data: games; videos; and advertisements thrown in on top. They want to interconnect with you and they are prepared to pay for your data. Think of the man who invented the printing press and decided he wanted to make a book shop. Lots of book shops. The press is the data, and the books are the apps/games/vidoes/adverts. Sponsored data will become the new printing press (excuse the poetics).

Every key on that press is like a byte of data, and the CSP will collect revenue from each stroke (Cost per Megabyte). It also gets paid in dollars from each app download (Cost of Install); and each advert hit (Cost of Action). It also collects a handsome licence fee from telcos who White Label the CSP. Many, many telcos will do so in the footsteps of Tata. AT&T, Sprint, Verizon, Samsung, and HP. Chris **riel will bring onboard very soon the major Middle Eastern and African telcos.

To conclude (for now); US dollars will start rolling into SYT now. It is attracting very good media coverage in the States, and this will expand now with the recent, famous new Directors. News flow will be fast and furious, and the present Q's will be nothing to sneeze at. Next Q's will be mind boggling and show an income trend on a vertical rise. This is because between now and next Q's there will be a European and Sth American launch.

The above has mostly had Freeway in mind regarding expansion, while much of the same can be applied to Dataflex's rollout in the US and potentially Europe.

TA: if you think SYT needs a chart breather, then please sell. Pros will pick them up before it drops a few pips as they have been doing this last month. But there is much more to come in SYT's expansion that will sustain steady growth, and this will be boosted by spurts of strong buying as certain announcements demonstrate continual development. The recent spinning top Doji's were succeeded by a higher open and close. Holders now are waiting. Sellers are being bought readily. My target end October is minimum 9 cents.

Thanks for listening. Floor open to questions.

Quotes from new Directors:

"After working in the telco and mobile industry for decades, I’ve only seen a handful of companies like Syntonic with the potential to succeed based on the widespread global impact the technology can have on massive populations of people. Syntonic is on the right track, and I’m ready to jump in on the board with strategies and ideas to help strengthen their position as a leading provider of sponsored data solutions.” - Chris **riel

“My decision to join Syntonic’s Board of Directors was very deliberate, driven by my assessment of the company’s product strategy and the executive team’s long-term vision. Syntonic is well positioned to make a big impact on the way mobile data is consumed and used for business intelligence. The road ahead looks bright and I’m excited to see what we can accomplish.” - Steve Elfman ex-President of Ops SPRINT.