Value Microcaps Motherboard

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SYNC: NIA is still advertising this stock like crazy. This message sounds like it was written by a 17-year-old:

"On June 5th NIA will be going to the 7th Annual Needham Internet & Digital Media Conference to see a huge presentation being given by Synacor (SYNC)'s CEO and CFO to the investment community. The buzz has been building about TV Everywhere big time in recent weeks and we expect a huge turn out with many of the investment community's most wealthy investors going to see SYNC. NIA will be issuing a major SYNC report that evening going over everything we learn from the company.



Needman & Company, which is hosting the conference, recently issued a buy rating on SYNC and gave a $13 target price. Although NIA isn't an investment advisor and never recommends to buy or sell any stock, NIA believes that SYNC is an opportunity so big that it is worth accumulating as many shares as possible below $13. We consider SYNC a steal below $13 and in our opinion, as soon as SYNC surpasses its 52-week high of $13.60, it will quickly soar to $15+ within just a day or two!



We don't see how we can lose at SYNC's current price of $11.14. SYNC at $11.14 is quite simply the biggest opportunity we have ever seen in history. According to Needham, TV Everywhere will become a $12 billion market within the next 3-5 years. With leading executives from Time Warner and NewsCorp pushing other television industry leaders this week to enter the TV Everywhere market as fast as possible, we could see the TV Everywhere industry reach a $12 billion market size a lot sooner. Clearly the most powerful industry insiders recognize how huge the TV Everywhere space is about to become and how important TV Everywhere is for the future growth of all television service and content providers: http://www.deadline.com/2012/05/big-media-execs-tell-cable-operators-to-speed-up-tv-everywhere-deployment/

The main TV Everywhere topics being discussed in recent weeks have been authentication and user interfaces, and SYNC has clearly positioned themselves as the TV Everywhere leader in these two areas. The traffic growth being experienced by Charter, CenturyLink, and Verizon Fios, clearly makes those three companies the most successful in the TV Everywhere space so far, and it is due to SYNC's market leading TV Everywhere platform. In our opinion, many additional cable/telco TV companies will decide to start using SYNC's platform over the next two years. NIA believes SYNC could potentially gain 100% in a single day with the announcement of a new large client.

30 million households are expected to use TV Everywhere by 2016, and SYNC is accelerating TV Everywhere adoption by offering solutions for service providers of all sizes and offering a complete multiscreen experience for their subscribers. If you watch ESPN, you will now see WatchESPN commercials airing nearly every commercial break. NBC is planning to soon begin airing constant TV Everywhere commercials for the Olympics this summer. NIA predicts that over the next two months, millions of Americans will learn about TV Everywhere and start using the technology, which will cause Wall Street to go crazy looking for TV Everywhere stocks. SYNC is the only true TV Everywhere play on Wall Street and its current prices will soon be just a distant memory!

NIA believes that SYNC's 2Q revenues will likely end up growing by triple GOOG's 2Q revenues on a year-over-year basis. GOOG is trading for 5X sales and we believe SYNC deserves to be 5X sales immediately at a very minimum. We believe SYNC will deserve a much higher price/sales ratio later this summer when TV Everywhere becomes mainstream in America.

NIA believes SYNC will blow away 2Q analyst estimates for revenues of $30.78 million. In NIA's opinion, SYNC could potentially grow 2Q revenues by 5% to 10% from 1Q revenues of $30.7 million, which would equal 2Q revenues of $32.24 to $33.77 million for year-over-year revenue growth between 66% and 73%, surpassing 1Q revenue growth of 64%!

The low end of those two numbers $32.24 million would increase SYNC's trailing 12 month revenues from $103.04 million to $115.81 million and a price/sales ratio of 5 would make SYNC a $21.54 stock by the end of July. Once TV Everywhere becomes mainstream, we believe SYNC could deserve a price/sales ratio of 10. If SYNC can reach full year revenues of $130 million with a price/sales ratio of 10, by year-end SYNC could be a $1.3 billion company, which would equal a share price of $48.36.

NIA isn't an analyst or investment advisor. Don't invest based on anything NIA says. NIA doesn't recommend for you to buy or sell any stocks. NIA never makes any financial projections or target prices.



Disclaimer: NIA currently owns 555,472 shares of SYNC. NIA initially purchased 350,000 shares at an average price of $8.53 per share. NIA has agreed to a 60 day holding period on its initial position of 350,000 shares but intends to sell these shares at some point in the future after the date of July 2nd, 2012. NIA has accumulated an additional 205,472 shares of SYNC. NIA intends to sell these additional 205,472 shares in the future and can do so at any time. NIA reserves the right to increase 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.



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