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Another Confusing Syndication Inc (SYNJ) Press Release

What is it with Syndication Inc. (SYNJ.PK) and its press releases that use a lot of words but never really say anything? The latest one came yesterday. From what I could glean, the company has initiated what they’re calling Phase I of their Bio-diesel production partnership with Sentinel Renewable Energies S.C. Inc. What’s less clear is why the company chose to declarify the message with quotes from some of management’s key members.

What we didn’t get was an explanation of what ‘initiation of Phase I’ means. Does that mean production has started? Does it mean the hardware is no on place? Does it mean revenue is flowing? The news release didn’t say. What we did get, however, is a list of both companies’ officers and directors, and the geographic locations of any and all of Syndication’s partners (and some of their partner’s partners).

But wait - it gets even stranger….

McCutcheon Marshall Jr. (President of Syndication), when asked to comment on the merger, said:

“The only specific comment I have on the merger, is that I think it’s great…. However, as far as I understand, it was done some time ago. It’s the corporate policy style to let internal developments of the Company season a bit before releasing news…. Mr. Sorrentino wishes I not name at this time. As the legal department becomes comfortable it will allow me to release the details of these relationships, including the financing, but, not before,”

In all fairness, Marshall is a new addition, but did he actually say ‘as far as I understand’? I have no problem with a CEO not making legal assumptions (that’s what lawyers are for), but this guy seems to have no say at all, nor does he seem responsible in the least for getting Phase I going. Yet, his name is plastered all over the press release.

But wait - it gets even stranger….

Brian Sorrentino, the CEO of Syndication, stated….

“Mac (McCutcheon) has assembled a ‘World Class Team,’ why is anyone surprised?…. Mac moves fast. In just 4 short months he has launched the Bio-Diesel Phase of the program and has me working on Phase 2.”

First of all, did ‘Mac’ do anything or not? He says he really didn’t (though he doesn’t seem sure), and Brian says he did. Worse than that, why is the President instructing the CEO what to work on (Phase II)? It all has to be done eventually, and the two likely work as a team. It’s just an odd (disfunctional?) way of posing it.

More than anything else though, the news release left me wondering one important thing…. so what? As an investor, why should I care if Phase I has been initiated?

Clearly I’m being rhetorical, as Phase I’s beginning means progress towards revenue. Considering the company’s extreme fuzziness though, a little more clarity is still needed. They never even came close to answering the ’so what?’ question.

As for SYNJ shares, the market loved the news despite the lack of meaning, sending the stock higher by 60%. However, Syndication shares have had a serious problem hanging onto its gains lately. Unless the market can attach some real dollar amounts (even ballpark guesses) to the news, this stock is one I advocate selling - taking profits - when it surges, and then buying on the dips.

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