SYNX

[David Randolph]

Synergx Systems Inc. (SYNX) Formerly known as Firetector Inc.. The Group's principal activities are to design, manufacture, market and service a variety of data communication products and systems. These products are applied in the fire alarm, life safety, transit, security and communications industry.

SYNX made a 68% move on Friday and I couldn't find any news or press releases from the company. Is this a «terror play»?   Well, I guess so, I would need to dig a bit more to confirm this ...

Anyway, when SYNX moves it moves a lot ...



... so this could be the beginning of a powerful bullish move. To know that, I need to know what's the story behind the move. Ok, I found that SYNX has something on the subway security area, so the stock is on the right place at the right time.

With a market cap of just $16.20M, a float of just 3.28M shares, 26.4% held by insiders, 15.3% held by institutions, this profitable company is probably set to fly next week.

Let me show you this nice research text on SYNX:

«Schumer says the recent attacks in London and the March 2004 attacks in Madrid show terrorists are intent on attacking mass transportation. Schumer congratulated the NYPD for taking extraordinary measures to protect New Yorkers, but he says politicians in Washington have to provide more money for subway and rail security.

For every air passenger we spent $7 a year for security. For every mass transit passenger we spend a penny. The federal government can do a whole lot better than that, said the senator.

Schumer is sponsoring an amendment to the homeland security spending bill which would provide $1.-6 billion for mass transit security. The bill failed to get the necessary 60 votes last week, but the senator says he will push for another vote.»

There's enough fuel on the speculative tank to make this $16.2M company to be worth it's triple, what do you think?



3 Stocks on Fire Community take on SYNX

I've decided to buy SYNX at today's open, 5% of total capital of the 3 Stocks on Fire Portfolio. In comparison to IPIX I believe SYNX has more short term potential.

This analysis is part of «Top 5 Stocks for Monday», conducted by David Randolph from 3 Stocks on Fire. David Randolph is managing a public and diversified portfolio which is up 140% since May 2005.

At www.3stocksonfire.org we have a vast community of investors, traders and speculators that everyday exchange stock picks, trading strategies and much more. If you want to join our community and receive our free newsletter, please register.

[stockpicker]

I looked at SYNX a long long time ago (probably during its prior run-up) and the fundamentals weren't impressive at all. However, it seems like a nice play here.

Maybe I will also pick a few shares

GL

[basonista]

I see that SYNX has been up over 50% in pre-market trading .  David, does this sort of price action change your <buy-at-the-open> trading rules?  Or do you have a plan "B" in such cases?

Thanks for educating us!

Glenn

[Ramsburg]

Good morning,

David called me to write this post (he is away from his computer right now).

SYNX is trading above $5 on the pre-market (+63%), this situation makes the risk-reward ratio for this trade to be much less attractive, so we have to abort/standby this trade for the 3StocksOnfire portfolio.

Best regards,

[BadarZ]

David called me to write this post (he is away from his computer right now).

The dedication shown by both of you is unbelievable. Keep up the great work. (applaud)

BadarZ

[starfire]

I see that SYNX's chart has a nice small G followed by a strong gap up! Will it be followed by another G or continue to rise? Time will tell.

[tommyt]

I'll just call this the one that got away. Big Time.
I put my money in IPIX.

[calguy]

Got away for sure!
I watched it from the opening thinking it was topping out and too risky. More often than not these stocks will crash after a big move. The ones i play crash and the ones i pass run. lololol.....Oh Well........I'd rather have missed profits than sure losses.
Playing it safe pays off in the long run.

[eduardvs]

Definite pump off of the Security plays.  The company didn't look to have anything else going for it financially speaking.  Got in and out as quick as possible so as not to be a bag holder. 

[ehos]

... and here comes the dump.

[Gurukul]

Those who buy by the momentum dies by the momentum.

[tommyt]

I don't think that's entirely true. We have each other to share our insights and help others walk away with profits. Elite and Saffey saved me 7,000 today by selling GIGA before the close. It's natural to want to squeeze out every penny from a winner, but by sharing our positions with others we are better able to notice our over-exuberance, and walk away with a win.
This is one of the values of a site like this, trader to trader, speculator to speculator.

[Gurukul]

Right.

[metro]

There are two threads on this stock

This one has been in the range for 3 weeks and so far today nice move. Sold some in pre market as it is over $3 and figure can buy that back lower. Guess they are up on NY city subway worries

http://tinyurl.com/9eqja

It is likely a long term hold anyway if it stays above this range

From Briefing com

08:14      Security-related stocks lift in pre-mkt in reaction to New York City subway system alert

   CNN reports that New York City's subway system was under heightened alert Friday after officials received information from the FBI about a "specific threat," Mayor Michael Bloomberg said. There were indications that a terrorist attack on New York's subway system is possible "in the coming days," New York Police Commissioner Raymond Kelly said Thursday. Law enforcement sources told CNN the threat information came from Iraq and that it included claims that a group of 15 to 20 people were in the United States to carry out an attack against New York's mass transit system... Briefing.com Note: Following the London bombings, the following stocks rallied sharply in pre-mkt (these are pre-mkt gains seen the morning of the London bombings): SYNX +77%, TBUS +48%, IPIX +37%, GEPT +22%, MACE +22%, STKR +19%, RAE +19%, ISON +18%.

[nocky]

might be accumulating for another pop?  taken down sub $2 now looks like someone is sneaking in the backdoor

JMHO