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.
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