Hi Patraticia,
Still a shareholder, I'm glad to see that.
Synergy does have a couple of darn fine cigars, and the new model, if marketed properly, could become a status flagship that helps the entire line. If I understand their soon to be released cigar's development correctly, they are about to take on Fuente Fuente Opus X. It remains to be seen, I have yet to see the packaging or smoke one for that matter.
I too am hopeful that Internet revenues will increase the bottom line, but I think it is important for new investors to be aware of a couple of things:
1. This is not really a "vibrantly growing company;" in earlier growth they acquired a Kosher food business that Krantor was unprepared to run. That nearly bankrupted the company. Any investor willing to pull up a price history longer than a few weeks, and study more than last years annual report, will see the split adjusted price of nearly $150.00/share just a short four years ago and realize just how close to bankruptcy Krantor was. As I said, this is not a vibrantly growing company, it is a company that is recovering from the abyss. Certainly kudos are due Mair and the other hard working people at Synergy for recovering the company.
2. JR Cigar (JRJR), probably the largest cigar retailer in the US just went online. So far the reaction has been + .75. Why such a dismal reaction? Well, the cigar boom in the US is over. No name cigar manufacturers are tanking right and left. Formerly $4 & $5 cigars are being blown out for a buck apiece. I think Synergy realizes this, and that is why the delay in opening the cigar Internet site. I believe they (probably wisely) went for the cosmetics and a better opportunity of initial sales/sales growth.
Don't misunderstand what I am saying, I have been a shareholder for some three or four years now and have been accumulating shares when the price was right. I plan to continue doing so. Dilution is a worry, but if revenue continues growing at the recent pace, there will be no need to continue selling stock to cover operating expenses.
All IMO |
