Synchronoss: Slow Progress Could Suddenly Accelerate
There is progress, albeit fairly glacial, in new customer wins, expansion at existing customers and margin expansion, limiting the downside from here.
Yet the company has undeniable large opportunities in RCS messaging and the personal cloud, that could accelerate at any time.
Then there are the very expensive preferred shares paying 14.5% yield which the company is likely to refinance at some time in the future.
So basically we see the shares as having fairly low risk here with option value if things start to move faster on the RCS, cloud and/or refinancing front.