Are you on the SNCR train yet? You know I’m going to be on it real soon. I had fun trading this a few years ago, and it’s back on track as a heavy favorite for the bulls. Why is SNCR so hot right now? Basically, it comes down to the phone wars. I think one of the biggest news to hit the street recently is that Verizon gets iPhone contracts. The second important thing you need to know, is that the early adopter stage for Andriod operating phones is long over. To illustrate this, when you hear the word “Android”, what comes up in your mind? Probably something like, competition for Apple and Windows based smart phone market. I think we tend to overlook how much the Android operating system has affected the phone industry. Probably some of you right now have an HTC phone or a Motorola with Android, and you probably look down on iPhone users the way iPhone users look down on Samsung users that run Windows or something like that. But then you find yourself enticed by another brand that comes out with a boss-phone and you just got to have it. Next thing you know, you’re switching phones yearly like Kim Kardashian switches boyfriends. Bottom line, the game is still on, and as long as smart phone companies continue to develop new phones to win you over, Synchronoss is actually the one who wins in the end. Why? Well, it’s what SNCR does on both sides. Think of it this way… imagine each phone carrier company to be a supermarket. Now imagine that each phone production company to be a box of cereal. You have your Apple iPhone Jacks, HTC Puffs, uh, Frosted Motorola, yeah whatever you get the idea. Each cereal is fighting over shelf space, adding toys, changing flavors, doing whatever so you buy them. Meanwhile, chilling like a boss in the cold food section is 2% milk. That’s SNCR. They provide activation for these phones to each carrier. So basically, smart phones without SNCR are, well, dumb, as is cereal in a bowl with no milk.
Here’s the blah blah from their website. Notice how SNCR gets more lucrative as the competition gets heavier:
“Synchronoss’ Content Transfer and Synchronization Module ensures content is portable between mobile platforms and operator networks. Unlike many sync transfer services that are limited to a single brand of phone, Synchronoss offers cross platform support. Whether consumers are upgrading their feature phone to a new smartphone, or moving between mobile operators, Synchronoss’ solutions are up to task. ” http://www.synchronoss.com/device.htm
… Do you see an iPhone? Or do you see an opportunity? Invest in what the crowd does not see. SNCR!
If anything, use SNCR as a lesson of the company you want to invest in. You can tire yourself trying to see whether Apple, Android, Samsung, HTC, Motorola, Verizon, At&t, will win marketshare, or you can find that small company that shares every market.
The era of “Android”. Kind of looks like SNCR’s stock chart. Odd no?…
Update: I’m so pissed at Apple right now. Argh!!! Dumb updater.