Savvy Trades and Investments

[collinmcb]

SNYR - I estimate the business is worth over $1.50 as earnings ramp the next few quarters. Exiting 2017, SNYR will have $0.20-0.25 EPS power and a similar FCF/share based on adding Focus Factor to new Walmart stores and new product launches on the Synergy Effect platform.

On May 3rd, SNYR announced it was raising capital at $1.50/share. The company had $0.03 of EPS in 1Q which should be sustainable over time, giving a $0.12 EPS run-rate. Investors such as Knight Therapeutics (TSX: GUD) who are subscribing to the offering are valuing SNYR shares at 13x run-rate P/E. Shares seem attractive at current prices ($0.75) given what private market buyers are paying for the stock and the strong cash flow and earnings of the business. Knight Therapeutics management is very smart and well respected; they compounded at 25% a year for a couple decades with Paladin and sold to Endo. Knight is their next investment vehicle and Knight is backing Synergy. Synergy's CEO Jack Ross owns over 50% of Synergy shares and Knight owns 20%; I like who is on our side