Stock Ideas 
Market Watch SYNX ALERT: Buy at $2.04!
Market Watch SYNX ALERT: Buy at $2.04! 
Market Watch
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By Chris Johnson Dear Reader, Last week, I took a look at the unsavory side of trading earnings in recounting our Amazon.com trade experience. To sum it up, we bought puts ahead of earnings and the stock went up 27 percent in one day. Ouch. |
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| SYNX ALERT: Buy at $2.04! |
| Thursday, 25 October 2007 | ||||||||
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We also don’t have a very nice market to say the least, but this is worth a look,as SYNX is holding steady, and has really picked up that volume. SYNX, out of New York, through its subsidiaries, engages in such as items as fire and smoke monitoring, security in airlines and subways, municipals, hospitals, schools and many transportation outlets throughout the New York metropolitan area. Video, smart cards, voice commands are all part of Synergx's portfolio in this sector. In its most recent deal, Synergx Systems Inc.announced a systems integration contract for the NYC Transit Facility. This alone was worth $375,000.On August 9th, the company reported gains in revenues in quarter over quarter from the previous year. In addition, during the three month period the Company secured approvals to commence shipping a new $5.0 million project for a new New York City Subway station security system. Finally, management commented in it August 9th earnings release, "We are pleased to report that the Company's order position reached $12.1 million at the end of June 2007. With our increased order position from our transit business and growing audio visual sales we do expect stronger revenues, which together with stable fixed overhead and improving gross profit from our service business should result in a return to profitability. We also expect to continue to book additional work, but there is a lag between securing large transit orders and obtaining releases for our transit backlog of projects and realizing revenues from these projects. Synergx Systems Inc. Announces Systems Integration Contract for NYC Transit Facility The company has been cash flow positive on its recent year end results the last few years, although this most recent quarter, the company was not cash flow positive. But with management coming out on its 9 month report in August, with solid guidance, perhaps the market is picking up on this for some solid movement going forward. SYNX has a market cap of around 10 million, with a stock float, available to the public for trading, of around 3.60 million shares. Its 200 day moving average is around 2.04, which is what it is selling for around right now. SYNERGX Systems Inc. (SYNX)SYNX averages about 8 thousand shares traded daily, usually very light, and mid morning here on the 24th, it’s already gotten 35,000 shares traded. In short, here’s where we are at on the buy suggestion: If the stock can hold 2.04 today, we’re going to make this a stock pick for our subscribers. There’s an earnings run coming, probably to early November, for year end as well, and it’s hung tight here, price wise, for a decent amount of time. Technical indicators indicate a decent opportunity here, with some limited downside, to take advantage of this earnings run.
Aggressive traders can buy during the day on any move past $2.05. Altogether, the strength in this down market, the increase in volume, the recent order back-log, the timing of the earnings run, and the technical say this is a decent time to make some money! For conservative purposes, a stop loss around $1.80 would work. The risk perhaps is that the back-log of orders isn't progressed to the point of realizing results. We will shoot for an opportunity to cash in, however, and NanoCap Gems will keep you posted on developments. Here's a link to their website: This alert is for information use only, as NanoCapGems is not a registered advisor. Stock picks are not guaranteed, and can lose significant value. Nanocapgems.com has not been compensated in any way for this stock pick, and does not hold a position. Affiliates and members, including founder, Tipton, may hold and sell shares. Tipton does hold a personal position. For full disclosure, please refer back to our website,. Source : NanoCapGems
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