Post by
schnauser on Oct 08, 2014 8:20pm
Too Much Paranoia
People:
get a grip. SYD is a thinly traded stock in a negative cash flow situation, and they are out of money right now. The stock is going down because its being sold. Think how few people it requires to move this stock down significantly. There doesn't need to be a manipulation motivation. Its just irrelevant. If you don't understand the situation, then maybe you should sell and buy something less volatile.
Redsox has pointed out that they are a phone call away, and if you have questions about the fundamentals of the business, you can have them answered.
For me, the only relevant question right now is: what are they going to do to raise the cash they need to get through this next year? Q4 is going to be awesome, but Q1 and Q2 of next year, they will still need money. I expect them to reach cash flow positive in Q3 of next year. There's nothing wrong with the product, but adoption has been much slower than everyone had hoped. (just look at the projections of analyst write ups from a year or two ago).
If what Redsox said is true, that they will be getting a loan, then any weakness here is an opportunity, if he is wrong, or they suddenly do another financing at these prices, yes then the selling is warranted as the dilution will be significant.