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SNTY Synety Grp

71.50
0.00 (0.00%)
25 Apr 2024 - Closed
Delayed by 15 minutes
Synety Grp Investors - SNTY

Synety Grp Investors - SNTY

Share Name Share Symbol Market Stock Type
Synety Grp SNTY London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.00 0.00% 71.50 01:00:00
Open Price Low Price High Price Close Price Previous Close
71.50 71.50
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Top Investor Posts

Top Posts
Posted at 23/3/2016 07:46 by visionon
thanks 140661. The Bullhorn initiatives sound positive - very small % of their client base in USA so if Cloudcall can repeat the UK in % terms that will be a decent number. I think Simon said 100,000 Bullhorn users (6000 clients) so if Cloudcall can get c.10% then that alone would get users numbers up over 20,000 from the current 12,000 and close to the discussed b/even point.

B/even could be a psychological trigger for the small cap investors. It's been talked about for some time...
Posted at 23/3/2016 07:31 by 140661
visionon, IMHO its all about sentiment and I feel yesterday was an important step in turning sentiment positive. I sense that the company is trying to be cautious in its outlook and that is hardly surprising given they have been wrong consistently over the last 18 months but this probably leaves a fair degree of upside from what they are saying. Second, I like the fact that the largest shareholder continues buying, they must know more than anyone else about how the business is doing and their continued support is encouraging. The appointment and greater involvement of the new Chairman Peter Simmonds is very positive. He has had a great 2/3 years with Dotdigital first and now IS Solutions (up well over 200% in less than 18 months)and his advise is showing through in the new strategy which is working. So in summary, I agree that the fundamentals may suggest a 20/30% increase in share price from here during 2016, I am hopeful of significantly more as the story becomes stronger and some of the major small cap investors who are large shareholders but have not bought since the last placing begin to buy again. GLAH
Posted at 19/2/2016 10:20 by duncandisorderly
The major problem with Synety is obvious.Lot's of jam was promised and very little was delivered.The immediate hype and price rise of this company was based always on huge numbers and gaining traction at a considerable pace.This was what we were all lead to believe by certain over excited members of the bod and has consistently failed to deliver.This will now become a very slow burner for most and is the reason why a lot of investors have left.Is it worth sticking with now is up to you?????????????
Posted at 17/2/2016 09:38 by visionon
Agreed H&H. Placings are generally to investors wanting an attractive discount at the moment. The interest rate doesn't look too bad given that SYNETY have nothing really in the way of realisable tangible assets. If in 12mths time the share price is 30% higher then both Barclays and shareholders have done ok. Furthermore my feeling was that the share price was being managed down to accommodate a possible placing, so it will be interesting to see if there is some general recovery to the high 70s on the back of this news.

I think holders here have to stop looking backwards and focus on where the share price can potentially go from here given the reality-check in user number growth - or get out and stop posting. My average is far higher the the current share price but if we are back over 100p end of this year that's a pretty good return for not bailing out. And I would hope that Barclays have at least done some homework !!
Posted at 17/2/2016 07:36 by the grim reaper1
Does Cleaver really believe Investors are not going to read through on that?

Trap door starting to open, exit left
Posted at 16/2/2016 20:54 by shaunstar
Jeez SNTY share price it taking a battering. I'm glad i sold out 6 months ago - but im not being smug - i took a big loss. I sold but like everyone else here i DO think Synety will come good. Its just got to show us the proof. No proof and falling markets generally mean the share price will languish and thats to be expected i guess.

Personally two things i have learnt form holding Synety.
1. It's better to wait until a company shows you proof they are making money/passed inflection point/hit a target than to buy in ahead. Things always seem to take longer than expected and part of my maturing as an investor is to sit by the sidelines like a crocodile, nagged by anxiety that i might miss out, but remembering that i'd rather buy in 25% higher but with certainty, than risk an all too often 50% decline whilst waiting.
2. Pay some attention to TA. I'm a died in the wool fundamental value/GARP investor but i have learnt through pain to use a little bit of TA. Ie dont catch a falling knife, higher highs=good, lower lows=bad etc. I suppose generally this is saying buy shares with some momentum - less stressful.

I am waiting and hoping for that RNS that says 'Cash flow break even reached' or 'Placing and cash flow break even now a certainty'. At which point i think it might be time for existing holders to double down.

Another company that i believe may benefit from operational leverage is STM Group, but they are past break even point. Again i'm resisting temptation to buy, waiting for next set of results or a better lookig chart.

Oh and if anyone is interesting in picking shorts - i have a thread solely for that - its fun money (some positions i do take) but it seems a hell of a lot easier than the long side :-/

All will be revealed soon, gla,
Shaun
Posted at 21/1/2016 14:32 by deltrotter
Totally disagree with you on TM.

To lay the blame for the shareprice on investors and to excuse management for their strategy failure is wrong IMO.

If the company is growing and delivering the share price will look after itself as investors will buy. If the company is faltering and not delivering investors will sell.

God may love a trier, but the market loves an achiever!

Remember the game changer from 14 months ago, cough cough....
Posted at 21/1/2016 13:53 by the millipede
I have to say I completely disagree about the management. I think they do try to deliver what they promise and, as we have seen, if things are not working out they take steps to improve things. I do not even think they are poor communicators - they have been advised, quite correctly in my view, to stick more rigidly to the script required by stock market rules...... hence quarterly ARR updates were thrown out the window. This makes them seem aloof, but I would rather that than have them talking up the share price every other day.

A lot of AIM stocks are simply vehicles to pay useless management exorbitant salaries, funded by placing shares to ever willing small investors. SYNETY is not the same in my view. Although that does not mean they will succeed, to be honest, I think the signs are very good. Revenue IS increasing and they might actually turn to profit within a year. I think that would be extraordinary progress if they succeed.

I agree the share price is abysmal but that is more down to the behaviour of investors than anything under the control of management. The market is not rational. Management are. That is the right way round IMVHO.
Posted at 24/11/2015 17:23 by the millipede
Shaunstar, Ha ha. I like your thinking and, in general, I think it is a fair point of view. That said, I think it is dangerous to assume directors "know more than we do." They should not do at the point they are buying or selling shares in the market!

I think large buys can be suspicious though, partly because what might be a large buy to me could be very small beer to a wealthy individual and partly because of how the share price is impacted. For instance, I think the relatively recent director buys at Glencore, which led to a fairly substantial rise in its stock price, should be counted as highly dubious. This is still a company that could do bust with further falls in the copper price yet the actions of, among others, Tony Hayward, have given a confidence to small investors that I think simply is not warranted.

FWIW Note I am not saying that the intention was suspicious in this example. Merely that investors should be suspicious, in my view, of following the crowd as it ramps up the share price of a very risky stock just because someone else has been buying. Of course TH wants to make money. Whether he does or not remains to be seen.

Anyway, nice to see further buying here. That might even cheer up Duncan. CHEERS, TM
Posted at 18/3/2015 11:25 by soul limbo
Synety (LON:SNTY)
Share price: 92.5p (down 33% today)
No. shares: 8.4m before, 12.3m after fundraising
Market Cap: £7.8m before, £11.4m after fundraising

Wednesday, Mar 18 2015 by Paul Scott

There are three announcements today from this niche telecoms/software company.

New Non-Exec Director - good news in that a highly relevant new NED has been proposed for appointment, Peter Simmonds of dotDigital (LON:DOTD) - a company which has been very successful in selling a niche software product on a SaaS model.

Final results - for the calendar year 2014. Clearly the market got wind of there being something up, as the results announcement has been delayed almost three weeks. Delay is never good news, hence why the share price has been falling of late. I'll come back to the results later.

Placing & Open Offer - it's been obvious for a while that the cash position was going to be tight in the run up to breakeven (forecast for early 2016), you could work that out yourself from the interim accounts. However, that didn't bother me because I thought it would be a quick & easy matter to raise a couple of extra million quid, if needed, given that the KPIs have been showing strong growth.

Unfortunately not. There has clearly been little appetite with investors for another fundraising, just a year after the last one raised £4.5m (before expenses) at 250p per share. As a result, the company has been forced to price this latest fundraising at just 90p - half the price the shares were trading at just a month ago.

3.1m new shares are being issued at 90p, raising £2.8m in a Placing. Existing shareholders will have the opportunity, if they wish, to take part in an Open Offer, on the basis of 9 new shares for each existing 91 shares held, also at 90p. So if fully taken up, the Open Offer will raise a further £0.75m.

My opinion - to be brutally honest, this has been handled badly by the company. It didn't raise enough money last year, and you can't go back to investors saying, ooops sorry we're going to run out of money. Or rather you can do that, but they may well take a very dim view, as has happened here.

Bottom line for investors though, you have three options;

1. Cough up some fresh money to maintain your % holding in the company (which should be possible, as some investors will not take up their Open Offer shares, so you can apply for an excess amount), or just buy in the market to offset the dilution from the Placing.

2. Do nothing, and accept that you will be diluted.

3. Sell up and move on.

So it's up to each of us to decide what to do. Personally I've done number 1, because I like the company & the product, and think they are close enough to the original plan to mean that, with the additional money, it should reach breakeven next year.

Final results - coming back to these, the figures are slightly below broker forecast - an operating loss of £5.35m, versus the most recent house broker forecast of £5.1m loss. Turnover is up 198% to £1.63m. These figures may sound terrible, but the company is building a high quality recurring revenue stream (clients are charged monthly, and the churn rate is very low). So the business model involves the up-front fixed cost of providing the cloud-based service, plus employing a sales team to generate customers. That was always going to be loss-making at first.

The interesting part is when operational gearing kicks in & the business has the potential to become highly profitable (as the gross margin is c.70%).

There was £2.36m cash left at end Dec 2014, clearly not enough to take them to breakeven (forecast for mid to late 2016 now, although that does tend to keep slipping). The monthly cash burn rate is c.£300k I understand, at the moment.

The key KPI is annualised recurring revenue (ARR). This is the current run rate of sales at any point in time. You can see ARR building nicely below - remember these are recurring revenues, so a reliable income stream;



My opinion - the growth is impressive, but isn't quite fast enough to get investors excited (clearly!), and I feel that the breakeven point is too high. So personally I would like to see the breakeven point lowered somewhat through a closer focus on costs.

It will take a while for the dust to settle over this latest fundraising, and let's hope the new NED brings a tighter focus on reaching breakeven sooner, and with more cash headroom. I think this has to be viewed as the last fundraising, given how brutal the discount demanded by Institutions was this time.

On the upside, all it would take is some decent KPIs later this year, and this share could end up looking a real bargain. The product is fantastic (I've used it), and there is encouraging growth happening. The company now needs a total focus on delivering sales growth.

Obviously there are a lot of hacked off shareholders today, but in the long run that doesn't matter. The shares will succeed or fail based on the delivery of strong growth this year.

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