SYX

[David Randolph]

The second quarter 10-Q file was published today at 13:23 ET. I read it, and it's clean, or at least they're cleaning it the best they can, introducing several financial internal controls.

I'm pretty confident that the two day's fall from $19 was groundless. This is also demonstrated by insiders activity exercising options to buy shares around $15 in October. It is a matter of time for SYX to push higher towards $19 and probably go beyond that level.

[David Randolph]

There's nothing to add to what I wrote yesterday on SYX. A small day in the market, both in terms of intraday price range and volume.

[David Randolph]

Nothing new on SYX, as I and the market continue to expect the company to deliver on the promise it made when it reported second quarter results, on November 22:

"The Company continues to work diligently to become current in its financial reporting and intends to release third quarter results before the end of December 2006."

Ok, it's before the end of December 2006, so they still have twenty days. The best thing that could happen would be if on the 3Q earnings release they said that 4Q results will be released on schedule. That would completely take out the cloud over this company's valuation.

I'll continue waiting and holding SYX.

[thai626]

"The Company continues to work diligently to become current in its financial reporting and intends to release third quarter results before the end of December 2006."

You know, I'm starting to feel very apprehensive about SYX.  If they drop another bombshell about another financial release delay, that would just suck to the nth degree.  I can't afford to lose 50% in two trading days.   

With that said, I still have faith that they will release by the end of December and that the numbers will blow us out.  I just wanted to let it out that I do feel some apprehensiveness as the end of December is coming near. 

Nothing for me to do now but hold and watch SYX very closely.

Signed,
Mr.  Apprehensive

[Amarens]

Think that goes for the most of us. Wouldn't a stop be a good idea. I'm thinking at $ 12,50?

Would like to hear your view on that David.

Amarens

[David Randolph]

You know, I'm starting to feel very apprehensive about SYX.  If they drop another bombshell about another financial release delay, that would just suck to the nth degree.  I can't afford to lose 50% in two trading days.

Well Mr. Apprehensive, first of all, thank you for your post

Second, I think that if you read the initial analysis made on SYX, you'll see that the stock is now trading at a deep discount to its industry average. This means that probably, even if something comes out bad from the company, the fall won't be large, because that's priced in.

What's not priced in is the positive view that the company is coming back on track, both on its numbers and release schedule.

So I don't see a lot of risk, but the upside potential is quite attractive.

Think that goes for the most of us. Wouldn't a stop be a good idea. I'm thinking at $ 12,50?

Would like to hear your view on that David.

Amarens

Thanks for your suggestion Amarens I don't think a stop would be a good idea. If I had that $12.5 stop loss order before I would have sold at, say, $12.45, and the stock yesterday closed at $12.81.

I know the short term timing was bad, buying after that big gap up that wasn't a breakaway gap, but the stock has been fairly stable lately. Anytime, we can have a white marubozu that takes us back to the $14 - $15 level.

If the company reports Q3 by the end of December and says it will report Q4 on schedule, I have no doubts it will run to $20 plus. If they don't, if they say there will be more reporting delays, I see it going down another 10% from here or so ... I'll take my 20% loss then, I was wrong.

But at this moment I think of SYX this way: my short term entry point wasn't good, but everything I said on the long and medium term technicals and fundamentals still stands.

So I'll continue holding SYX.

[David Randolph]

Feeling a bit better on SYX today? Well, it was up while the general market was down.

I like the fundamentals and I like the chart, I'll continue holding SYX.

[David Randolph]

Let's cheer up everybody on SYX, the stock is coming back

November retail sales came out stronger than expected so people started nibbling online retailers too.

Just look at the current design of www.tigerdirect.com, I think it shows a lot of enthusiasm, don't you?

There was a bullish breakout of a short term descending resistance, volume picked up, I think I'll make my money back on SYX, plus more, in a short period of time.

[buddjas1]

I have been waiting for an entry point for SYX.  I will buy SYX tomorrow.

[David Randolph]

I have been waiting for an entry point for SYX.  I will buy SYX tomorrow.

Great timing buddjas1

SYX is coming back strongly, patience is paying. As I once said, I don't know if it was on this thread or not, everybody can set a mathematic stop loss rule, but an experienced trader knows when to take a loss. I didn't thought it was wise to stop the loss on SYX, since that loss occurred due to bad short term timing, not because of a change in the technical trend or the fundamentals.

Just look at the aggressiveness of www.tigertrading.com ... If I had not four or five computers at home I would buy another one for sure. Or maybe a webcam, I need one ... I'll check it out later.

I love this business. I'm glad the stock is up again, since I would like to hold it for a somewhat long period. For now I'll just say hold SYX.

[David Randolph]

SYX had a small consolidation day today. I see that they change the website's homepage everyday, with new products and promotions.

If the company is able to get back on track on its reporting schedules I see this baby flying over $20 in no time, as the stock is undervalued and has great potential (as you can read on the initial analysis and the rest of this thread).

I'm happy holding SYX, I'll keep it that way.

[buddjas1]

http://biz.yahoo.com/bw/061218/20061218005586.html?.v=1

3Q 06 earnings release tommorrow after market close.

Are you holding through?

[thai626]

I think David will be holding through.  This was one of the things he was looking for before year end so I doubt that he will sell now unless he has some bad feelings about what might take place.

[David Randolph]

I think David will be holding through.  This was one of the things he was looking for before year end so I doubt that he will sell now unless he has some bad feelings about what might take place.

You're right thai626

I don't care much about the actual earnings figures (the 3Q is seasonally weak), what I would like to see is if they say, on the press release or on the conference call, that they will file 4Q results on schedule. I think that would be a tremendous boost for the stock. If they don't, I believe the stock stays about the same, because the bearish scenario is already build into the valuation.

[tokyopua]

Apparently a lot of people dont want to hold through earnings.  After the announcement today about earnings, the stock seemed to freefall 10%.  Currently to 10ema is holding it up, sort of   


----------------
Webcast Announcing 2006 Third Quarter Results

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--December 18, 2006--

  Systemax Inc. (NYSE:SYX), announced today that it has scheduled a conference
call for Wednesday, December 20 at 8:30 a.m. EST to discuss the company's
operating results for the third quarter of 2006.


  To participate in the call, interested parties can dial 866-314-4483
(domestic) and 617-213-8049 (international), access code: 68167949 to register
ten minutes before the call is scheduled to begin. This call is being webcast
by CCBN and can be accessed at Systemax's web site at www.systemax.com.


  If you are unable to listen to the live presentation, a telephone replay will
be available from December 20, 2006 at 10:30 am ET until the close of business
on December 27, 2006 and can be accessed by dialing 888-286-8010 (domestic) and
617-801-6888 (international) and entering access code: 93591488.


  The webcast is also being distributed over CCBN's Investor Distribution
Network to both institutional and individual investors. Individual investors
can listen to the call through CCBN's individual investor center at
www.fulldisclosure.com or by visiting any of the investor sites in CCBN's
Individual Investor Network. Institutional investors can access the call via
CCBN's password-protected event management site, StreetEvents
(www.streetevents.com).

   About Systemax Inc.


  Systemax Inc. (www.systemax.com) has developed an integrated system of
branded e-commerce web sites, direct mail catalogs, infomercials and
relationship marketers to sell PC hardware, related computer products and
industrial products in North America and Europe. Systemax is a Fortune 1000
company.

    CONTACT: Systemax Inc.
             Steven M. Goldschein, 516-608-7000
             [email protected]

    SOURCE: Systemax Inc.
Copyright Business Wire 2006


  (END) Dow Jones Newswires

  12-18-06 1057ET

10:57 121806