Synchronoss Technologies: Strong Forward Potential

Synchronoss Technologies Inc. (SNCR) is a small, but growing mid-cap technology company. They provide multi-channel transaction management solutions for communication services. It enables communication service providers to have a single transaction view, which offers a centralized reporting platform for intelligent analytics’. It is presently incorporated in the I-Phone and has the potential of being incorporated in multiple different types of mobile communication devices.

This company has had strong insider buying with $1.5 million dollars in shares purchased in the last 2 to 6 months. In addition, the institutions have been steadily buying shares with approximately 16 million net shares purchased in last 9 months.

The company has had steady earnings growth with positive upward surprises vs. analyst’s expectations. It is estimated that its five-year forward earnings per share is expected to be approximately 29% a year. It has an operating margin of 26%.

The downsides to this company involve its valuation which has a forward PE of approximately 67 and its relatively small size. The unknown factors include how widespread will its proprietary devices be used, and whether it will continue to grow or even possibly be acquired in the future. It certainly has some degree of risk and unknown factors, but the insider and institutional buying plus its remarkable chart may make this a reasonable stock to have in one’s portfolio.

Disclosure: I have long positions in SNCR.