Josh Young
Hedge fund manager, energy, value, special situations

6 Reasons I Am Short Synergy Resources

I recently built a short position in Synergy Resources (NYSEMKT:SYRG). Synergy stock has more than tripled in the past year from a low of $2.80 to a recent price of $9.90 per share. This rapid move, combined with the potential fundamental risks and challenges from a recent natural disaster, caught my attention. The situation reminded me in some respects of a short position I put on in August, GreenHunter (NYSEMKT:GRH), that subsequently traded down more than 45% after I published my analysis, despite a rising stock market and rising oil prices. After more work, I built a short position in SYRG and expect the stock may fall for some of the following reasons:

1) Ultra-high...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details