Seeking Alpha
Editor's notes: SYRG's valuation is well out of line with peers despite operational struggles and vulnerabilities. Josh Young, who scored related hits on GRH and GST, sees 50% downside.

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:

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