this stock gaps up or down often for no apparent reason. At least thats what it seems like to me Stoney. Correct me if i'm wrong.
Two news pieces have BRLC taking off this morning. Up 7%+. Gelbtuch says "One of the biggest short squeezes of all time". StarMine Analyst Profile CIBC World Markets' Daniel Gelbtuch John J. Ray 05.01.07, 6:00 PM ET Analyst: Daniel Gelbtuch Brokerage: CIBC World Markets Industry: Semiconductors, Computers & Peripherals Rank: 9 "A lot of controversy and misunderstanding is what I like to find," quips Gelbtuch when asked what he looks for when picking stocks. But don't take his methods for a joke; StarMine ranks him ninth among all stock pickers who report their selections to Thomson Financial. Over the short term, the 34-year-old CIBC World Markets analyst likes Syntax-Brillian (nasdaq: BRLC - news - people ), a television manufacturer for the budget-minded. Under the Olevia brand, the company has managed to place its products in all of the top retailers in the U.S. and China. "The stock is much undervalued and one of the most shorted, most controversial stocks out there," Gelbtuch says. "I think this is going to be one of the biggest short squeezes of all time." If you wish to cast your lot with Gelbtuch, Syntax-Brillian sells for 8 times its June 2008 fiscal-year-end consensus forecast of $0.86 per share.
Also positive comments in IBD article: Investor's Business Daily Upstart Syntax-Brillian Edges Into TV Picture Tuesday May 1, 7:00 pm ET Patrick Seitz Olevia, the television brand from upstart electronics firm Syntax-Brillian, is becoming a pain in the side of established brands such as Sony, Samsung and Sharp. Syntax-Brillian (NasdaqGM:BRLC - News) applies some of the same techniques to TV production that Dell (NasdaqGSELL - News) used to become a giant in personal computers. The Tempe, Ariz.-based company has a lower cost structure than the big names in consumer electronics, so it's able to undercut rivals' prices, says Vincent Sollitto, chief executive of Syntax-Brillian. But Syntax-Brillian isn't the low-priced vendor. It is aiming for the mid-tier customers who want a high-quality digital TV set but don't want to pay the premiums charged by Sony (NYSE:SNE - News) and other tier-one vendors, he says. "We've come in with a (business) model that says that we're pricing our product 20% below the tier-ones and 20% above the tier-threes," Sollitto said. He counts the Vizio, Westinghouse and Polaroid brands among the lower tier. When it comes to flat-panel TVs, U.S. consumers are very price conscious, says Riddhi Patel, an analyst with research firm iSuppli. If the picture quality looks the same and the price difference is more than $200, buyers will go for the cheaper set, she says. That has given an edge to Syntax-Brillian, she says. "In North America, specifically, consumers are looking at LCD TVs as a new market with no established brand leader," Patel said. LCD and LCoS Sets Syntax-Brillian sells two types of televisions. Its biggest category is flat-panel liquid crystal display TVs. It also sells rear-projection microdisplay TVs that use liquid crystal on silicon, or LCoS, technology. Formed by a November 2005 merger, Syntax-Brillian has been able to capitalize on a glut of LCD panels from suppliers. That situation is likely to continue this year and into 2008, says Eddie Taylor, an analyst with market research firm DisplaySearch. But in the second half of 2008, LCD panels could be harder to come by and that could favor the tier-one TV makers, he says. If suppliers prefer to sell to the big vendors and they raise prices for Syntax-Brillian, the company could be forced to raise its prices and lose some of its advantages, he says. The company is expected to announce results for the quarter ended March 31 next week. It reaffirmed its revenue and gross margin guidance for its fiscal third quarter on April 12. Syntax-Brillian expects revenue of $160 million to $170 million on unit sales of 210,000 to 240,000. It expects a gross profit margin -- revenue after subtracting the cost of goods sold, as a percentage of total sales -- of 15% to 17%. Analysts polled by Thomson Financial see earnings per share of 12 cents on sales of $167 million. It lost 26 cents a share a year ago. Sales are forecast to rise 266% from the year-earlier quarter. Syntax-Brillian has been profitable for the past two quarters, after losing money every year since at least 1998. Sollitto says his company's prices will force the big guys to lower their prices and profit margins. Syntax-Brillian can generate gross margins of 15% to 20% and operating profit margins of 5% to 10%, he says. Tier-one firms, he says, have been making 3% to 7% operating profit on 30% to 35% gross margins. Low Overhead The company hopes to continue its strategy of keeping low overhead, high productivity and a tightly aligned supply chain, he says. Most of its suppliers have equity in the company. "They have a stake in our overall success," Sollitto said. Two years from now, Syntax-Brillian expects to be a major player in the high-definition television market. The company is targeting 10% market share in LCD TVs in North America. In the fourth quarter of 2006, Syntax-Brillian had 6.8% of the LCD TV market in North America, iSuppli says. DisplaySearch puts the figure at 4.9%. Syntax-Brillian has set its sights on the sub-$1,000 market, Taylor says. It wants to be a top vendor of digital TVs for people replacing cathode ray tube sets, he says. The company has been smart about how it publicizes the Olevia brand. It's forged marketing alliances with sports channel ESPN and sports and entertainment presenter AEG. It also has been expanding its retail presence. Its products are available through Circuit City Stores (NYSE:CC - News), Target (NYSE:TGT - News) and some regional chains, and in much of Asia.
The problem with BRLC right now is that there is so much overhead resistance. Lots of stockholders stuck in from the earlier month who are anxious to get out once the stock hits a certain price. Then there are the career traders who swing trade this for a quarter or two then dump. It needs a really good story to get it going. Its lost momentum now.
All across the board the shorts are getting killed. Now, there are teams incl Prop SHops looking for ideas llike this to kill. Why do you thing CMG was up 14 yesterday? I heard today a short shop went out. That leaves the Prime Brkr with a big headache.
SHUT UP!!!! Geez TD I've been trying to weasel in at my price as I stated earlier in this thread I suddenly feel the urge to buy the name. $7.00 support and a couple whiffs by me for a few cents around $7.50 and each time the stock gapped up on me it coincided with a Topdown post on ET!
Don't quibble about 10 cents for something which has so many shorts. Of course, no one knows for sure, but I could easily see a scenario where this is one is $10 up by year's end.
heh.. i picked some calls yesterday for MAY 7.50 at .35. Damn, I wished I loaded up at .35. I might have to buy some shares if it dips.