New articles out
Business Wire http://www.businesswire.com/news/home/20150602006174/en/Tier…
WSJ
http://www.wsj.com/articles/wireless-software-company-synchr…
SNCR
winning new business!
and
willing to become somebody else’s business?
Business News Flash,
KLVanLiew
Awesome! Up 15% after hours!
-Daya
Saul, you mentioned in your month end report that SNCR hasn’t gone anywhere since you bought it. To me that sounded like you might have been thinking of selling it. Did you? If not would you be inclined to sell it on this take over rumor and today’s run up?
I also have held SNCR for a while and it bothered me that it was the only red in my portfolio. Today I am all green.
Bruce
Remember health is wealth.
Saul, you mentioned in your month end report that SNCR hasn’t gone anywhere since you bought it. To me that sounded like you might have been thinking of selling it. Did you? If not would you be inclined to sell it on this take over rumor and today’s run up?
I also have held SNCR for a while and it bothered me that it was the only red in my portfolio. Today I am all green.
Hi Bruce. It ran up 20% today on the hopes of a buyout. I sold almost entirely out at about $51 in the pre-market.
Saul
Thanks Saul, I also sold shortly after posting to you.
Bruce
Saul,
Truly, these are questions, not accusations.
Your purchase of SNCR was rather recent (within the last 3-4 months?) and from analysis published on this board the valuations were in ‘good’ ranges, what is the driving factor of your sale of SNCR today? I note, you stated “almost entirely out”. Did you run new numbers and they are now too high and hot? You don’t think they have other market opportunity? Did you note the valuation range of a buyout was $2billion and with the 18-20% share price increase that number was crested?
Thankful for your thoughtful and munificent replies.
Learning, slowly learning,
KLVanLiew
Your purchase of SNCR was rather recent (within the last 3-4 months?) and from analysis published on this board the valuations were in ‘good’ ranges, what is the driving factor of your sale of SNCR today? I note, you stated “almost entirely out”. Did you run new numbers and they are now too high and hot? You don’t think they have other market opportunity? Did you note the valuation range of a buyout was $2billion and with the 18-20% share price increase that number was crested?
Hi KL, that’s an excellent question. Why did I sell? First the price has been falling and I didn’t know why. Then why would a company with such apparent good prospects be TRYING to sell out at just 20% over a deflated market price? Makes no sense. Then I get a 20% magical bump in the price from one day to the next. I’ll take it.
If the sale falls through, the price will come back down. If they let the sale go through their prospects couldn’t have been that good in the first place. I mean, 20% over their reduced price isn’t much. They’ve been as high as $54 and over $50 several times in the past year. Why are they so excited about selling out at $50 or so. Just gave me the feeling that something was going on that I didn’t understand. I could be totally wrong about this, and they may be able to sell out at $55 or whatever, but I wasn’t comfortable, and they obviously don’t think much of their future growth prospects (which puzzles me to tell the truth).
I hope that that helps.
Saul
Saul,
It does help, thank you. Simple common sense reasoning AND action. Your fine-tuned faculties in logic and reasoning, coupled with bold decisive action, have served you well.
Follow-up:
Could be future growth ?'s. Could be “show me the money, today”.
So with a capture of ‘only’ 10%± return (even if that means $3-400) in the course of a couple months (this is my case) might you say, if it were you, +10% in short order and new questions without answers equals close the deal and move on to a higher conviction pick?
Wondering as I wander (correct, I don’t have the ‘bold decisive action’ gene),
KLVanLiew
Saul,
I read through your FAQ over the past several days - it is lengthy!
Based on my understanding of your investing model, you say you almost never stay in cash - at least not for very long.
If you don’t mind me asking, where did you redeploy your newly available working capital? Did you pick one of the lower 1YPEG stocks?
Thanks for all that you do.
–Kevin
Saul, I read through your FAQ over the past several days - it is lengthy!
Hi Kevin, That’s why we’re working on shortening it. I hope the reading was worthwhile though.
Based on my understanding of your investing model, you say you almost never stay in cash - at least not for very long. If you don’t mind me asking, where did you redeploy your newly available working capital? Did you pick one of the lower 1YPEG stocks? Thanks for all that you do.
–Kevin
Sorry, I haven’t figured out yet what I’m going to do with all the money, and I don’t usually give updates on my trades as I do them. Just once a month, with a few exceptions.
Saul