I recently built a short position in Synergy Resources (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 (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:
Only subscribers can access this article, which is part of the PRO research library covering 3,758 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: