I have been a lurker on this thread for over six months. I watched people hype this stock, giving us history lessons, telling us only 19.2 million shares were outstanding, etc. . . . BIG TIME CHEERLEADERS SHOUTING THAT IT WILL BE $35 AND IT'S A GRAND SLAM, and comparing this to other multibillion companies like McAfee. There was the hype over EyeCatcher with its March 17 release date (right!). Then there were those folks who debated with Elizabeth Rouleau (the only one I wish I paid attention to) on the Reg S (debenture issue), telling her it was taken care of . . .WOW, she was flamed and eventually chased off the thread.
I own a majority interest in two software companies and have a substantial background in programming and networking. Reading this hyped-up thread, I bit hard on a substantial number of shares at a price of 4 7/16. After all the hype about this great little software company in the making, I thought a visit to Syncronys headquarters would be worthwhile.
My wife and I found Syncronys headquarters to be a dilapidated building, identified by a tacky paper sign taped to the wall. Quite surprising for a company valued at over $50 million and in existence since 1995. Stepping into the office, I gave the receptionist my business card and asked if we could talk to someone about investment information. She appeared nervous, especially when Mr. Poertner's (Syncronys CEO) secretary called her to find out why we were there. She told us the officers were in New York and would be back the next day, and that no one was available to talk to us. I then asked her for some prospectus information. She said no materials were available and that it would be mailed to me. Poertner's secretary called again, and, judging from the receptionist's reaction, instructed her to get rid of us. The receptionist was quite paranoid by now. So much so that when my wife asked if she could use their bathroom, she refused. What kind of crap could they be hiding in their bathroom?
All this time Poertner's secretary was giving us a get-the-hell-out-of-here glare. I asked the receptionist if we could visit with someone the next day. She responded nervously, but said "sure" and to come back around 10:30. We left with an awful feeling.
The next day, I set off by myself and arrived at Syncronys headquarters. This time Poertner's secretary was there to greet me with a very stern look on her face. She rudely told me that they do not see anyone without an appointment and that I should call back to make an appointment. I politely asked her for a prospectus and materials on the company and she said that they would forward them to me. Being extremely disappointed that she was so very RUDE to me, I proceeded back to the car and noticed a man going into a back entrance. I said "Excuse me. Do you work here?" He hesitated, but walked over to me. I told him briefly what happened. He was polite and I told him so and he quickly told me that he was the CEO. I explained that I am the owner of a small software company and was requesting prospectus information. He said he would take care of it. It has been nearly four months and we have yet to receive anything.
So much for investor relations. Now about product integrity.
After my investment with Syncronys, I bought Softram and Windrenalin to see if the products really do work. We have several different kinds of computers in my office and I installed these products on random computers. Windrenalin DID NOT SPEED up the programs at all. Actually it slowed a couple of programs on one computer. Running the DEFRAG utility gave us a decent speed increase, but we certainly don't need Windrenalin to do this. As for Softram, it didn't work at all. It locked up the computers. It is PURE GARBAGE and it is still a scam of a product. The only reason I didn't ask for my money back was I was a shareholder.
If that is not enough to make an investor feel bad, I found out that Poertner sold 300K of his shares. Then out came this convoluted and confusing information about how the debentures are being handled. Then the delay of Eyecatcher, which is very long overdue.
Granted, we now have Utility belt. BIG DEAL! It's just a collection of shareware downloadable stuff anyway with big names attached to it. Who knows, maybe it will sell well. With enough hype. Hype . . .the one thing Syncronys is good at.
Where are all the home-run products Syncronys promised? Why is share dilution up to 24 million? Why did COO ( David Gatto) leave? With all of this I decided to dump our shares for a substantial loss recently.
Why should anyone stay in? Rainer is a smart marketer (and a good BS'r as well) and he is definitely greedy and probably will cause big spikes in the prices, so this stock will do well for day traders from time to time. But he has yet to reassure me that this company will not repeat another Softram fiasco soon. I think the officers are just looking for that next niche that can get them to the exit door with all of the shareholders' money in tow.
One recommendation for serious long-term investors: due diligence on Syncronys should include a visit to corporate headquarters. If they let you in the bathroom, I have a feeling you'll find way too much crap to flush.
Sincerely,
Charlie
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