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Synthesis Energy Systems (SYMX)

September 11th, 2008 · 1 Comment

Sometimes, you do a lot of research on a company, and the more you do, the less you like it. This is a little bit the case with the company we researched lately.

It started out promising, a proprietary technology for converting low grade coal into combustible gasses. It seemed a particularly promising proposition to us, but we waited a long time doing some more research because it had a rather generous market capitalization.

Also, as energy prices soared and the gap between coal and natural gas became wider (cheaper inputs, more expensive outputs), and demand for (clean) alternatives increases, making the proposition ever more enticing.

But there are a few red flags though’:

  • The CEO and a few other officials left
  • Gas prices in the US have come down a lot recently
  • The market cap is still quite significant
  • There are few indications that their facility (there is one up and running) actually provide a very enticing business model, but this might be due to start-up cost.

On the other hand

  • they did move to the Nasdaq recently (although it hasn’t done them any good)
  • they were able to attract a lot of finance ($50+M and a whopping $100M at $9 per share, roughly double the current share price), but we couldn’t find any filing for the $100M offering (that might be our fault though).

So, we publish the research, sit on the fence, do a little more searching perhaps, and perhaps people have some useful comments to make.

Tags: SYMX

1 response so far ↓

  • 1 Marcelo Vergara // Oct 29, 2010 at 3:03 pm

    The fact that the SYMX staff concerned with keeping the company business plans and prognosis of its future in the short and long term do not seem to reach all media to educate the public, investors, Government, on the outstanding technical achievements the company claims in times where clean and economically efficient use of energy is a global challenge for mankind.
    Something is not being handled properly when you look at the stock behaviour and when no response is given to articles such as the analysis and comments made on September 11, 2008 appearing above.