With last months tip performing, and considering the present FA/TA alignment, this next month's rise will be a walk in the park. Not that this means much around here, other than possibly raising concerns about my trading style, or that stock singularity in the STT is not welcome, or my apparent inside connections to the company....... bla bla bla. Alas, the woes of a public place, and a great shame for the thread. Regardless, this is also a place for tipping, so here it is..... again.
MC: 66.7M @ .029
Cash: 4.9M
no debt
Syntonic is a Seattle based mobile service provider with a range of products designed to disrupt traditional data plans and pay TV. It also has a solution to the large BYOD problem that is escalating in developed countries. It's Connected Service Platform is a cloud based operating platform for managing sponsored data, and it is the driver behind their apps, Freeway and Dataflex. FW hosts other third party apps, while DF creates split billing for BYOD, which is solution to the $2.2B overspend in the US alone. Dataflex is being launched in early 2018, and already has attracted numerous clients.
Recently, Overpass was launched on Freeway (Android and IOS), which is an OTT app using mini bundles (popular grouped apps) that can be purchased for a day, week, or month at minimal costs. These mini bundles are becoming the new means for popular app access, as they abandon tradional data plans. Likewise for pay TV: rather than pay a cable or satellite subscription, the industry in now being dramatically disrupted as consumers switch to mobile devices (see Pay-TV Companies Tank As Subscriber Losses Surge To Record Highs In 2017).
Freeway's global expansion has taken a back seat this year while all effort was put into the developmnet and lauch of Overpass, but now achieved, Freeway will ramp us, especially with 6 new employees. Tata, the other major partner, has launched its Sponsored Data Exchange, which utilizes the CSP, and is offered to its 190+ telco partners. Verizon have created OATH, the new platform made from AOL and Yahoo, which will steal market share from Facebook and Google's advertsing dollar. All Verison's sponsored data pays SYT, but nothing has been confirmed yet if the same deal will apply to OATH. My guess though, is a very big yes, for reasons that are obvious to those who comprehend the technology and where it is going. In short, Verison won't be changing it for OATH, so SYT stands to prosper from it. But mere speculation at this stage, if such a thing is permitted at this end of the market .
SYT has been in a downtrend this year like many tech stocks, but has held its ground very well compared to others that have tanked. It has had a reliable and predictable trading pattern, repeating a 20-30% high/low range. However, now that they have moved into the revenue growth cycle with Freeway moving out of trial, and Overpass generating revenue from day 1 from its 140M Verizon and AT&T user base (and being adopted at a great rate), we can expect new investment interest with the forthcoming Q that will reveal financial progress.
The basis of this tip is the forthcoming Q that will reveal the recent new income. There is no doubt that it will be greater than the near 600K last term, but it will probably still take another term to demonstrate the 'hockey stick' revenue suggested by the CEO. However, this Q will certainly make it clear that the model is working, even if still early days. So an easy 25% repeated like in the many previous patterns, but chances of a significant break-out if other news accompanies the Q, which is more likely than not.
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