In NIA's opinion, we could see SYNC upgrades any day now along with raised outlooks due to the Olympics far surpassing expectations.
On May 10th, Needham & Company raised their target price on Synacor (SYNC) from $8 to $13 and maintained a buy rating. On June 19th, Needham & Company downgraded SYNC to a hold because it surpassed their target price of $13. Following 2Q results, Needham said regarding SYNC, "we believe the Olympics could drive an upside surprise as contractual payments from customers plus higher advertising revenue and higher search query volumes related to TV Everywhere drive unexpected revenue and profit growth during July and August."
Comcast (CMCSA), which owns NBC, rose to a new 52-week high yesterday after announcing that the Olympics are far surpassing their expectations. We learned the other day that according to NBC, their TV Everywhere Olympic streams this past weekend totaled 24.2 million, approximately triple their online Olympic video streams on the first weekend 4 years ago in Beijing - and this year (unlike in 2008) it is required that consumers authenticate their pay-TV subscription, with SYNC authenticating 40 of the 102 pay-TV companies providing Olympic TV Everywhere access.
Procera Networks just issued a brand new report indicating that broadband usage for the London 2012 Summer Olympics exploded this past weekend, with Olympic bandwidth increasing 100% on Saturday and Sunday. In fact, Procera reported that over the weekend Olympic TV Everywhere bandwidth usage peaked at 34% of overall bandwidth usage on several major networks. This means that out of everybody using the Internet on these major U.S. networks, as much as 34% of bandwidth was going towards streaming Olympic videos on NBCOlympics.com. All of the people streaming videos were required to authenticate and approximately 25% of them authenticated through SYNC!
The unbelievably huge response to NBC's Olympic TV Everywhere coverage has surprised NIA big time! With SYNC now down substantially from where Needham downgraded it to a hold for surpassing their $13 target price, NIA expects to see Needham upgrade SYNC in the near-future and for SYNC to make a major recovery to $13 at a very minimum this month.
Also, the two analysts that downgraded SYNC to a sell when it soared to $18, Citigroup and Bank of America, both last reported their target prices as being $15.50 and $11 respectively. Therefore, the average of Needham, Citigroup, and Bank of America have target prices on SYNC of $13.17, so NIA fully expects to see not only Needham upgrade SYNC, but Citigroup and Bank of America could potentially upgrade SYNC very soon as well! We could see $13+ next week with positive Olympic news, but the big rally won't come until after the lockup expires on August 13th and all of the shorts cover on the news.
Extremely low expectations are priced into SYNC at this time, but this is about to change. SYNC is about to go from its current extremely low bottom basement beaten-down levels, to an extremely high valuation with rich multiples because in the weeks following the Olympics we are going to see TV Everywhere become the #1 main focus on Wall Street with investors loading up with every single major TV Everywhere play out there. Read this huge brand new article just out in CED Magazine entitled, "TV Everywhere on the cusp of breakout year ." http://www.cedmagazine.com/news/2012/07/report-tv-everywhere-on-the-cusp-of-breakout-year
It starts out saying, "The fruits of cable operators’ TV Everywhere efforts may start to ease the pain of basic video subscriber losses through increased revenues and less churn, but regardless of whether the numbers improve in upcoming earnings reports, multi-screen TV is slated for a big year."
It goes on to say, "2012 will be a watershed year for TV Everywhere services, as operators across the globe closely watch Comcast, Cablevision and Time Warner Cable to see if adding these services will have a positive impact on subscriber churn and revenue. TV Everywhere and other multi-screen video initiatives are fundamentally changing the TV business model, with apps streaming live TV to iPads and telcos and cable companies offering home automation, security and video conferencing to subscribers in an effort to make the TV the hub of the digital home."
SYNC is positioned as a leader in what is about to become the #1 hottest and most talked about technology space on Wall Street. NIA originally said that it expected SYNC to make its biggest run between 60 and 90 days after its initial suggestion on May 2nd. Although SYNC originally gained as much as 104% after NIA's initial suggestion, NIA believes SYNC's biggest gains are still ahead. NIA now believes the next 60 days is when we will see TV Everywhere stocks heavily accumulated by major institutional investors. Although SYNC is by far NIA's #1 favorite TV Everywhere play because NIA believes it has the biggest upside potential, there are a good 5 to 10 other TV Everywhere stocks that will also take off alongside SYNC within the next 60 days, in our opinion.
NIA is not an investment advisor and is not making any target prices or financial projections. Never invest based on anything NIA says. Always do your own research and make your own investment decisions. NIA never recommends to buy or sell any stock.
Disclaimer: NIA currently owns 539,255 shares of SYNC. NIA intends to sell these shares in the future and can do so at any time. NIA reserves the right to add to its SYNC position at any time.
NIA is not an investment advisor. This email is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This email is meant for informational and educational purposes only and does not provide investment advice.
Additional legal disclaimer information: http://inflation.us/legaldisclaimer.html
| This message was sent to blogotomat@gmail.com from: National Inflation Association | 96 Linwood Plaza #172 | Fort Lee, NJ 07024 | Email Marketing by |
| Unsubscribe | Send To a Friend |
No comments:
Post a Comment