Synergy Pharmaceuticals Inc fka SGYPQ

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Synergy Pharmaceuticals: Partner, Merger, Ex-USA Deal Or Co-Promotion?
Jul. 13, 2018 3:55 PM ET|28 comments | About: Synergy Pharmaceuticals, Inc. (SGYP)


Jose Solorio

https://seekingalpha.com/article/4187203-synergy-pharmaceuticals-partner-merger-ex-usa-deal-co-promotion

(825 followers)
Summary

On or before August 9th Synergy Pharmaceuticals has committed to provide an update on their strategic business review.

On June 12 the company hosted its annual meeting and early indications were given about what the possible outcome of such strategic review might be.

A group of only 6 investors was present at the annual meeting. I was one of them.

Short interest just experienced its biggest contraction in a year. Are shorts betting a turnaround is on the works?

Investors in Synergy Pharmaceuticals (SGYP) should be encouraged that the first roots of a turnaround are beginning to show in the stock. At least it seems that shorts are beginning to at least pare their short exposure in the name ahead of what could be a period of significant catalysts in the next 30 days. This article will provide the freshest information available to investors provided by management at the annual meeting. It seems from the answers provided by management a co-promotion deal along with an Ex-USA deal is on the works or at least the preferred route by management. It's my own impression someone has approached them for a merger as well.

Based on the answers provided by management, investors who are underwater or investors waiting on the sidelines should consider starting or adding to their position. Few times companies telegraph their moves ahead of time - But it seems at least shorts got the message and are starting to cover. Investors should use the upside momentum to buy and force even more short covering in the days to come. Shorts will most likely continue to reduce their exposure ahead of the August 9th event which was presented as a timeline to provide a business strategic update.

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