35% Later, Is Syntax-Brillian (BRLC) a No-Brainer?
September 14th, 2007 by 
James Cullen
Update: as of 1:15 pm, Wednesday… Soros Funds had no comment about BRLC and did not seem amused by my questions.
Wayne Pratt, Syntax-Brillian’s CFO, has not returned my call nor my two emails. Mr. Sollitto was contacted last night, but has not responded either. One more attempt will be made today, then this becomes my public crusade. I have assembled a list of institutional contacts holding BRLC shares, and they will be on speed dial should Syntax-Brillian management continue to ignore my repeated requests for information.
If you are a BRLC shareholder and support efforts to create a high-value dialogue with the company, add the questions you’d like addressed by posting a comment below, or email me (jcullen@collegeanalysts.com).
Two weeks back I had a debate with Rich about why he was long Syntax-Brillian (BRLC). Very simply, I didn’t think the stock was worth buying because there was a high degree of risk in the stock in the mid-$6s pre-earnings. Upon announcing earnings - which missed expectations by a penny - and the resignation of the company’s CFO, the stock fell 35% to $4.01. This huge swing in market value makes it worth going back to see if the market is rationally pricing this stock, or if in the 36M share sell-off yesterday (average volume: 4M) the stock might have gone a bit too far.
In my first piece on BRLC, I largely focused my argument on the negatives - namely, that this company has little to no track record of good performance (which I would define as profitable growth), and with the high unpredictability in the industry people should be cautious. With 40% of the float short pre-earnings, this wasn’t an all-is-roses company and it still isn’t, but with a market cap of $251.7M and tangible assets of $248.7M ($315.5M in equity -$36.4M in intangibles - $30.5M in goodwill) this is becoming a tangible book/net current asset play given the capital structure of the firm. No, that isn’t as cool a reason as “LCD Unit Growth in China,” but I’m willing to sacrifice sexy for accuracy here. Now the major concern becomes whether or not the assets Syntax-Brillian has are being properly valued. I’m going to completely write-off the value of PP&E, Investments, and “Other Assets” - in total, those three amount to about $16 million and the remaining $233M is essentially all current assets: receivables, some cash, a bit of inventory, and deposits with Kolin, Syntax-Brillian’s main manufacturer. Looking at it this way, you are paying 1.08x net current assets for BRLC. I would think that constitutes a bargain given that the company is growing net income, but is that the whole story?
That was a set-up question. No, it isn’t. Turn to “Note C: Related Party Transactions” in the just-released 10K. Syntax-Brillian received over $92M in rebates from Kolin in the last year, all of which is credited to COGS. As is, gross profit was $124.5M, but without rebates that would be $32.2M, giving the company a real gross margin of 4.6%. Further, operating income and net income would have both been negative were it not for the generous rebates. When you realize that only 25% of the company’s gross margin is organic and the rest depends on the ability of suppliers to leverage up the supply chain, it makes me wonder how stable Syntax-Brillian would be without its cozy relationship with Kolin. I’d speculate that the company wouldn’t have gotten this far, and such a key-man type of risk would worry me if I was long.
I see BRLC is opening down about 4% right now on heavy volume… with about 18M shares short pre-earnings and volume yesterday at twice that, I’d imagine most of the shorts have already covered their sizable gains on BRLC, as the smoothness of the sell-off yesterday makes me think there was a consistent bid under the stock by covering shorts. Does that make now the time to buy BRLC? Yes and no. In terms of a real value investment, this company leaves me feeling too uncomfortable on too many points to like the idea of investing in it. As a trade, however, I think that BRLC now falls into the field of “smarter speculation” given the combination of momentum indicators plunging to the bottom of their ranges and a cheap book valuation that should support the stock.
As long as Kolin continues to rebate Syntax-Brillian to the tune of $100M or so, the company’s margins will stay fairly high and it will be modestly profitable. I’d look for the rebates as a part of COGS to decrease, however, and that is going to make it difficult for Syntax-Brillian to meet bottom-line growth expectations as well as turn cash to fund more growth. The most interesting question of all might be, after the stock has been killed, will the company need to dilute existing shareholders even more to raise funds? If you’re tempted to buy BRLC, put it in the speculation box and don’t stay long for long…
If you are a BRLC shareholder, I’d like to hear from you. Send me an email - jcullen@collegeanalysts.com - with the one question about Syntax-Brillian you’d most like management to answer. I’m going to contact them soon and plan on posting what information I gather here.
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This article is part of the 54th edition of the Festival of Stocks.
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September 14th, 2007 at 3:39 pm
After taking the huge hit by holding Syntax-Brillian through earnings, I remain optimistic about the potential of this company. Here’s why…
One thing you have to realize about Syntax-Brillian is their demand strongly exceeds their production capability. The Olevia brand remains an attractive television, and any consumer report will confirm that. In the Cannacord Growth Conference “former” CFO Wayne Pratt boasted the existence of a new retailer, which many investors speculate will be Best Buy. Syntax-Brillian saw 100% growth; however their lowering guidance in regards to an Asian credit crunch didn’t please the street. However, this credit problem may be eased if rate cut takes place on the 18th as dollars will be circulating more freely.
In regards to the heavy short position, who’s covering? There has been no sign of a “short squeeze,” making the current price level a very attractive entering point for buyers.
While my trade has turned into a long term investment, I am still confident in the future profitability of this company. They have excellent long term growth potential, a product that is becoming more and more recognized, and a necessary change in management coming.
Please e-mail me with your feedback: jpliszka@students.depaul.edu
Author has a long position in BRLC.
September 14th, 2007 at 4:28 pm
I completely agree with the above comment by Jonathan. I initiated a small long position in BRLC before earnings, because I thought they were going to beat the street. I was wrong, and the stock is now 1/3 cheaper. I doubled my position as it bottomed out, because I believe that the long term prospects of this company are very promising. The earnings they just released included a per-share profit of $.48 for the past year. The high-growth stock now has a P/E of 8, suggesting that it’s very fundamentally undervalued. I think that there was severe overreaction to the news, and if it doesn’t bounce in the short term, it has potential to be worth two or three times the current share price in the reasonably-near future.
Author is long BRLC.
September 15th, 2007 at 1:22 pm
Despite the plunge in the price, we can’t forget that while some are shorting the stock, others have to be buying in order for the short to profit the investor. 35 million in volume for a stock that normally trades at 1/10 of that number, is no small indication that something is going on behind the scenes. I’m long on the stock. As mentioned above higher demans for product than production can handle is above average (if not superb)indication for longevity of a company. Plus the company has implemented cost savings in production techniques to insure a lower cost per unit for years to come. This also can translate into beating the pants of the competition if a price war develops. This company is poised and ready for battle in priceing, if a battle is to occur. They may have missed by a penny on the guesstimate of EPS for this quarter, but they beat last years by more than 15 cents. And is it possible that the analyst’s gueestimate was artificially higher so that the stock price would plummet?
September 16th, 2007 at 8:11 am
BRLC takes a beating after revising downward relative to analysts estimates. The same analysts had a $12-$16 price range. I could understad the bloodbath if the price were highly inflated based on the predictions. But I didn’t think it was at $6. So, the 35% drop makes no sense to me other than the short have a deathgrip on this stock. Even with revising downward, the company is still predicting sales over $1B, which is still about a 50% increase. Isn’t a 50% increase in sales usually a good thing? Regarding an economic slowdown, right now, they can’t meet demand. A $350M market cap for a company that projects $1B in sales? With these growth numbers, I’m puzzled by a $4 share price. I will admit that management hasn’t seemed to do much to help the price out much.
I own a 40″ Olevia LCD TV that I bought after Christmas last year (for $1100) and I love it. The product is great. Considering the price and quality, I don’t see the big boys pushing Olevia out of the competition.
I also thing that if this stock went to $20, Cramer would still be bashing it because he has a personal hatred for the CEO. He doesn’t tell Jim everything he wants to hear in his interviews. He’s #2 on Cramer’s list of CEOs that must go.
September 16th, 2007 at 9:53 am
This bored is riged to see the good out come not the truth.
pit bull is eating you loosers.
September 16th, 2007 at 11:41 am
I listened to the cc, and what struck me was when the CEO described the business model of one of their competitors, Vizio. Vizio is a private co., a sales instrument for a Taiwenese contract manufacturer, who simply assigns purchase orders (from places like Sam’s Club) to a Taiwnese bank, which operates a lock box in the US, and uses this to take control of the payments directly, and who then pays Vizio a 1-2% commission, and that’s how Vizio makes money. This seems like a very difficult business model to compete with.
While the market is big enough for many competitors, it’s an indication of the pressures on BRLC’s business. And, the question investors should ask themselves is the same question they should always ask themselves: is this the type of business I want to own?
It seems to me that there are so many businesses out there that aren’t facing these types of competitive pressures, that don’t have to worry about how quick they can get the financing in place, where there is the possibility of margin expansion, that why bother with any company that makes the bulk of its money in this industry? I’d look someplace else.
You’re right that the stock is very cheap and it’ll probably pay to be long if you ever capture that short covering. But, buying a stock just because it’s cheap and at some point the shorts might cover, doesn’t seem to me a compelling reason to own a stock; maybe 1-5% of the most speculative part of your portfolio, like buying a lottery ticket.
September 16th, 2007 at 11:56 am
It’s less than 1%. Also, it’s “board”, not “bored” and rigged has two g’s.
September 16th, 2007 at 12:21 pm
This is a traders stock not an investors stock. For one, Kolin is one of BRLC’s largest stock holders and it has the ability to manipulate BRLC earnings and stock price through rebates. Kolin can now trade BRLC stock or options long or short depending on its anticipated rebate to BRLC. Additionally,Kolin’s profits lost in manufacturing or sales through rebates to BRLC could be conceivably be made up or surpassed through trading BRLC stock. BRLC is nothing more than a puppet marketing company for Kolin and a front company to borrow money cheaply to fund the long Asian customary terms. Eventually after Kolin milks this pig for what it can they will buy it for penny’s
September 16th, 2007 at 12:40 pm
I bought on Thursday noting the P/BV near 100%, sales growth momentum, because it only missed by $.01, and that it had good volume. The only thing lacking, to be a good “dead cat bounce” was its low capitalization; an under the radar company. I bought more on Friday, and generally with such great volume on a no-volume stock, it will take about 10 days for the “fast” dead cat bounce money to give up. Then the stock price will move toward its reasonable value - what ever that is.
Questions:
1) Are the Kolin rebates volume discounts?
2) Is there anything about the timing of the rebates that might be construed as earnings manipulative or legally questionable?
3) What are the price points on their TV’s vs competitors (I’ve never heard of their brand)?
Lastly, Is this the next Hyundai or the next Yugo?
BTW, I appreciate stumbling on this website.
September 16th, 2007 at 1:36 pm
The analysts piece is based on fear and speculation. He takes into little or no account of valutions, sales growth, marketing and industry growth.
First, the analyst brings up the fear of dilution… this is a fear in a lot of stocks. And until it happens it is all speculation.
Second, the short ratio of the float is extremly high. To say the shorts have covered is just dead wrong.
Third, unless he is Vinnie himself, he has no inside info about BRLC’s relationship with Kolin. Kolin owns a big stake in BRLC’s stock and if they want to provide rebates, so be it. It is quite possible rebates will decresase however, future sales growth will outpace the decrease in rebates.
Now, that we have cleared up the speculation. Lets look at the facts.
Fact 1
Net sales increased 261% from the previous year.
Fact 2
Weighted average shares only increased 50% (diluted) from previuos year while stockholders’ equity increased 392%. Seems like dilution isn’t a problem here.
Fact 3
I have seen a handful of Olevia commercials on TV. They are gearing their Olevia brand toward the American male watching sports. This is a great marketing technique. Football and flat screens, smells like a winner.
Fact 4
The industry as a whole has a lot of room to grow.
Fact 5
Based on valuations this stock will go higher. In my most conservative estimates the stock will earn .80 in 2009. Unless it gets a PE of 5, yes a 5, the stock has to go higher.
MDG Wealth
September 16th, 2007 at 1:50 pm
And “loser” has one “o.”
I bought a bunch on Friday as the drop seemed disproportionate to the miss. I bought it as a TRADE hoping to make maybe half of the drop.
I was bummed to see Cramer talk about the CEO on Friday. I really respect Cramer and have made quite a bit of money off of his recommnedations. I don’t like to bet against him.
I was happy to stumble across this site to remind me why I bought BRLC this time. (I made 18% back in Jun-Jul after the drop off of the Circuit City deal). I’m not sophisticated enough to know if it is the shorts, but this stock seems to grossly overreact to the downside. That’s what I am literally betting on.
If I had a question for the CEO, I would ask him how he feels about Cramer’s comments to give him a chance to respond.
September 16th, 2007 at 7:26 pm
good no more crap just the truth
September 16th, 2007 at 11:59 pm
Some concerns I have:
1) Despite its strong sales outlook for the future, the stock is unable to maintain a steady price. Each quarter it’s more of the same - sales might look strong, but inevitably the stock price drops.
2) “CFO Wayne Pratt boasted the existence of a new retailer, which many investors speculate will be best Buy.” - Best Buy sells their own “in house” brand of low priced flat panel TVs - Insignia. Would they be willing to carry another low end brand and eat away at their “in house” profits?
I’m not trying to bash the stock - I hold a long position and want a bounce. But I’m cautiously optimistic.
September 17th, 2007 at 8:49 am
1. I don’t think short sellers covered. They took the news as a opportunity to short more heavily so their prior shorting will yield them great profits while the current short either will remain flat to little profit, for some time, until the stock really takes off. So, shorts remain if not increased quite drastically. We shall get to know the short interest data by the end of the month (Trade date may be mid Sep).
2. For a company that has made close to 700M in revenue, that has grown more than 200% YOY, that has projected 100% growth for the future, that has made 48 cents of GAAP EPS, $4 price is way too much and oversold. Those who might have bought through the $2’s and did not sell yet, might have sold a bit while shorts still shorted is my gut guess. We shall get to know the short data by the end of the month as previously said.
3. There are quite a few, I should rather say, quite a lot of companies out there with no or very less EPS, negative EPS, no or very less growth, very feable revenue (a lot of biotech can be examples, plus a lot of other tech and other sector’s can be examples) that are close to or higher than $10 bucks and BRLC to trade @ $4, I can not believe.
4. Question to CEO - why for that matter any good knowledgeable person-?
If company announces a thing like giving a slight dividend or for the sake of calculating the shares outstanding, company is providing share certificate to all loyal long term holders with a dividend, that should force the short sellers to cover their short position - they need to replace the shares by buying in the market, correct? For proper calculation and so company can issue share certificate to holders as of such and such date issuing share certificate to actual holders, will that not help to force the short sellers to cover?
5. For the CEO, don’t change the ER date … ever …!
September 17th, 2007 at 8:50 am
Thanks!
September 17th, 2007 at 9:12 am
Missed one another thing:
Crammer is not correct with all stocks. He was not correct with many stocks and he admitted himself many times. Even his own picks were ridiculed by someone else. Crammer just runs a show. One example would be of SMDI. He said sell sell sell and don’t even look back … he said that when it was trading at 7 bucks the second time (it moved from 3-13 and dropped based on a couple of foul downgrades -before accq. MLIN. The drop was steep, from $13 to $7 in just 10 days and that too with no other bad news from the company at that time). Crammer said to buy during the first run up from 3-7 and when it reached 7 from 13 he should have said either hold or not to buy any more, why sell? The rest is story … It is now bought by RFMD at $16.64…He usually says SMDI is a SIRI play while SIRI is only a 10% customer. He does not know all … don’t take others comments and comments from MB as a serious investing decision…that’s my 2 cents. Always do your own DD and decide based on only your own thinking and use others advise as only a tool to add to the pros and cons.
Question to CEO:
Can you talk to LUXIM, and see if their new revolutionary light bulb source will be of any help here. I am sorry, I don’t understand the tech. to a great depth, but panasonic is using LUXIM bulbs and have heard that the life time and quality of the picture is great and the intensity still 80% retained even after so many thousands of hours of usage. I am not sure about the product mix to the technology, whether it will suit or not, but worth everything at this time for the betterment of the company and for the better future and growth.
September 17th, 2007 at 9:15 am
I buy stock in what I own. The Olevia television I bought last Christmas works great. I originally thought of buying in at the $10 or so a share, but as usual, waited to bottom feed. With a trigger in place, I was able to pick up my shares at $3.99 per share and as usual, think the market is overreacting given its profit growth. I always keep ready cash on hand to buy stock on dips (e.g. last March, a year ago August) for stocks I plan to keep at least until long term capital gains kick in. Works for me.
September 17th, 2007 at 11:47 am
[...] Cullen presents 35% Later, Is Syntax-Brillian (BRLC) a No-Brainer? posted at College Analysts. Excerpt - “…the stock fell 35% to $4.01. This price swing [...]
September 17th, 2007 at 11:59 am
The long term prospects for BRLC (mid-2008 forward) seem strong given the upcoming HD signal change focus that will force new purchases BUT, being unable to secure vendor support to meet demand is something the big boys don’t take lightly (Target etc.). Second, I believe our economy is in for a temporary quick fall until we get our dual deficits evened out (trade, budget). If consumer confidence results in a poor Xmas 2007 then the short term for BRLC is not good. I would assume those orders have been placed but have heard little about the magnitude. Just some thoughts.
September 17th, 2007 at 2:44 pm
I am long on this stock. I wouldn’t like to repeat the good reasons which were cited above and I agree, and here are some more arguments:
1- You can’t be wrong to long on company which has more demands on its products that it cannot supply.
2- i doubt that the 92mm rebate is just a free lunch for BRCL, I guess that is a kind of structured deal between BRLC and Kolin. In business, always, something taking place, should be for mutual interests. I just don’t understand why BRLC want to deal with Kolin in the format of ‘rebate’, that is the question I would like you to ask BRLC?
3- Some analysts or bolgs said that Vizio is a formidable competitor for BRLC. I hold a different view. Because Vizio has a margin of 1-2%, it is in a very dangerous position than BRLC. If BRLC wants to take market share by lower its products prices, it is in position to be able to do so, and thus, it could easily beats Vizio. However, BRLC chose not do follow that path because right now it cannot even satisfies for demands from higher margin retailers. That the reason it doesn’t want to compete with Vizio in such low margin retailers such as Costco, Sam club etc..
BRLC has superior technology than Vizio (according to the media), higher gross margin than Vizio, with such two advantages, I am not too much concerned with Vizio.
BRCL needs a better management (in this respect, I happen to agree with Cramer), and a deep pocket to make it soars. BRLC is an ideal for a private party to take it over. However, I would not hold my breath on that to happen. I long on this stock on its own merits!
thanks
September 17th, 2007 at 11:48 pm
[...] were some good submissions this week that are worth mentioning. I appreciated the stock analysis of Syntax-Brillian (BRLC)  Canadian Imperial Bank of Commerce (TSE:CM), Dril-Quip Inc (DRQ), and LKQ Corporation [...]
September 18th, 2007 at 7:07 am
Question for CEO: Why is Barrons so negative on BRLC? Why are they not more forthcoming in their rebuttals to media articles from the likes of Barrons.
I don’t want this to be another Overstock. Bit-player in a low-moat commodity business.
I like the fundamentals, I like the HDTV story. I do not like this Kolin business, and the fact the company has issued no explanations on how that’s legit. They should have an explanation on how the accounting errors occured.
I do like the fact that 40% sales are outside US, and growing greater than 100% this year. They’ve added a lot of retailers since last years Christmas season, and this should be reflected in a high Christmas season shopping. Another plus is that LCD pricing should be stable till end of year. Higher ASPs on high margin high screen LCDs should help them as well.
Purely from a technical standpoint, stock is oversold, it will rally. Buy this before people realize holiday season is upon them and Olevia is everywhere..
Their LCDs are great quality. The software/firmware is completely inhouse, and is their moat. It is their superior video processing software that has earned them the high marks from Consumer Reports. I definitely think this is different than Vizio.
September 18th, 2007 at 12:31 pm
Fast traders will either double up or give up. And it looks like they are giving up. No-one is coming in behind them to pick up the pieces.
Its too bad the stock keeps drifting lower. Apparently, this company is not on traditional investors’ radars; maybe because it trades for less than $5.00. Fraud better not be involved - I sure don’t like sound advisors like Cramer and Barron’s going against it.
There is still another week, before the 15m shares purchased last Thursday are tendered to stronger hands. Lets hope this stock doesn’t drop below $3.00 by then.
September 18th, 2007 at 6:52 pm
I am amazed, after following BRLC on the Yahoo board for several years, this is the first time in about 16 months I’ve seen a real live intelligent discussion break out that lasts any substantial length of time. The Yahoo board is a waste of time. I spend half my time putting people on ignore.
Let me address a couple of points. The CFO, Wayne Pratt, retiring is a blessing in disguise. Normally, when a CFO unexpectedly leaves, that is a bad sign, and the recent decline in stock price reflects that conventional wisdom. However, Wayne Pratt leaving is good for BRLC. Wayne Pratt has been behind BRLC’s biggest SNAFUs … from being unable to finance production for at least 2 years (I have it on reliable information that BRLC could have sold much more product not only last x-mas but also the x-mas before if they had better financing), to messing up the handling of taxes in the FY2007 Q3 filing, to botching the secondary offering (coming off at $5.75 after the stock had been in the $8s and $9s for many months), to screwing up the treatment of the non-cash interest expenses (which caused BRLC to take a huge tax hit in the current quarter).
If Sollitto is to be believed from the CC and there is 3x more demand for their product than they can product, then being able to finance the production of more product is the #1 issue facing BRLC. Based upon Wayne Pratt’s experience, it appears that he didn’t have the wherewithal to develop a plan to fund BRLC’s operations. For example, BRLC is a company with almost no long-term debt. Look at the balance sheets of many successful companies and you’ll see lots of long-term debt. Anyway, if BRLC can snag a CFO with experience financing the rapid growth of a small/mid-size company, then I think investors will be well served.
I have heard Cramer and read the Barrons articles, and IMHO, they are shills for the shorts. I could spend several hours correct the errors/blatant misrepresentations of the two, but I won’t unless someone wants my response on a particular comment.
The reason BRLC is now taking a slow approach in Asia is to better service their US retailers, which was suggested on the Yahoo board many months ago. As for BRLC’s ability to do the predicted $500M in Q4 of CY2007, they did $242M in Q4 of CY2006 after doing just $87M in Q3 of CY2007 and $59M in Q2 of CY2007.
What I don’t like is that much of BRLC’s assets are tied up into deposits with Kolin and the tooling manufacturer. However, as described during the CC, these deposits were supposedly needed to kick start high-levels of production, which is presumably needed for BRLC to make the high revenue prediction for Q4 of CY2007.
As for the rebates for Kolin and Kolin’s relationship with BRLC, personally, I wish it was more at an arm’s length than it is. However, that is how business is done in Asia. The suggestions that Kolin can make more money from their stake in BRLC (under 5% of the shares) than the money they give up in rebates has been debunked some time ago and is on its face ludicrous. All it takes is to add up the number of shares that Kolin has and compare that with the amount of rebates provided. You’ll see that BRLC has to be well into the teens or twenties for Kolin to break even. Moreover, for each given quarter, that number gets bigger, which makes it even less likely that Kolin is cooking the books.
Someone asked a question of rebates/price protection. This is from page 32 of the 10K:
In March 2004, we commenced an arrangement with Kolin that provides us credits on purchases from Kolin. Under the arrangement, we receive vendor allowances from Kolin up to 2.75% of purchases for volume rebates, 3.0% of purchases for providing technical know-how to Kolin and 2.5% of purchases for market development funds. We also receive a 1.0% credit from Kolin for any unfinished products shipped to Nanjing Huahai Display Technology that need further assembly and a per unit credit for the assumption of warranty obligations. These vendor allowances are issued by Kolin monthly based upon units shipped from Kolin.
Regarding price protection/pass through credits:
Kolin also grants us price protection credits pursuant to which we receive a portion of any credits or rebates that Kolin receives from the suppliers of components incorporated into our HDTVs. Such amounts are recorded when the credits are received because the amounts are unknown until receipt.
The following is from page F-10:
Vendor Allowances. We receive several types of vendor allowances: (1) volume rebates, which are earned as a result of attaining certain purchase levels, (2) price protection, which is earned based upon the impact of market prices on a monthly basis as they become available from our vendor, (3) technical assistance and (4) market development credits, which are both earned as a result of monthly purchase levels, and (5) a credit on a per unit basis for our assumption of warranty risks. All vendor allowances are recorded when received, given that the vendor has no legal obligation to provide the allowances. We record the cash consideration received from a vendor in accordance with EITF 02-16, “Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor,†which states that cash consideration received from a vendor is presumed to be a reduction of the prices of the vendor’s products or services and is recorded as a reduction of the cost of sales when recognized in our Statement of Operations for product that has been sold, or as a reduction of inventory if the product is still on hand.
Anyway, enough for now …
September 19th, 2007 at 10:28 am
[...] financials and the housing sector in particular. While just about every stock was up yesterday (Syntax-Brillian was a notable exception), this cut will help housing-related stocks the most, and we can’t think of a better play in the [...]
September 20th, 2007 at 1:35 am
[...] to the responses, both public and private, that grew out of my post-earnings commentary on Syntax-Brillian (see all articles on BRLC) following the 35% drop in shares, I started efforts to [...]
September 20th, 2007 at 5:08 pm
Travelling man, thanks for taking the time and effort to so thoroghly explain the rebates and other matters. Where do I send the check?
Volume flow is drying up nicely. The recent trades to $4.20 are allowing the dead cat bouncers to enjoy a quick profit - and an important exit.
Hopefully, the stock will stay above $4.00 while this exchange takes place.
I think any dips below $4.00 will prove to be nice buying opportunities. Sometime next week, I expect the flippers will be mostly gone and the stock can resume its move toward fair valued - wherever that is.
Wish they had picked an outsider for CFO. Maybe he’s temporary and they just wanted to calm investors. If he is so good why didn’t he already have the job?
The news doesn’t have to be all good. Only the news we haven’t yet does!!
I am long.
September 21st, 2007 at 3:27 am
It’s another sony
buy
September 27th, 2007 at 9:53 am
I’m not so optomistic to say its another Sony, but I do think its BRILLIANT!
Flippers gone, stock held up well. Train ‘ll be pulling out of the station in the next week or two. Time to load up. Still not sure where its heading, lets hope up.
An added kicker, is that mother market’s eating anything Asian. If BRLN gets noticed, and starts to move, everyone, including my brother will be clambering to get on board. The shorts will be seeing RED!
October 20th, 2007 at 2:21 pm
It is amazing that this company is growing as fast as they can finance it. If they borrow $100 million, they can do $400 million business and make $40 million operating profit in 12 months. There are many banks who are more than willing to finance them. They can get Olevia TV orders three times as many as they can possibly manufacture. Ernst & Young has given a clean bill of health to their financial statements. What is more, shorts are barking on the wrong tree and have shorted 25% of the float which will likely cause massive short squeeze.
Admin Edit: Vince Sollitto Interview