Shares of Synchronoss Technologies (NASDAQ:SNCR) fell 20.1% in May 2017, according to data from S&P Global Market Intelligence.
After a difficult April, the provider of software and services for the mobile industry seemed off to a good start in May. Share prices rose 12% on May 5 as a private investment group disclosed a brand-new 13% stake in the company.
But the gains quickly evaporated as Synchronoss delayed its first-quarter earnings report -- twice. The company has now received a letter from the Nasdaq stock exchange, notifying it of noncompliance with the exchange's listing rules. Each of these events resulted in sharp sell-offs, and that early surge is old news now.
Synchronoss shares have taken a 66% haircut year to date. The company is running under a hastily compiled slate of executive officers, including former CEO Steve Waldis and CFO Larry Irving, who had left the company in sunnier days. All of this is happening under the cloud of Nasdaq's letter threatening Synchronoss' status as a publicly traded company. Moreover, preliminary first-quarter results point to weaker sales and thinner operating margins than expected.
I'm not saying that Synchronoss is falling apart, but this spring will certainly go down as a difficult period in the company's history. The challenges are serious enough to keep me from seeing today's low share prices as a buy-in opportunity. It's probably best to let this explosive string of difficulties cool down before putting money into Synchronoss stock.