Tuesday, December 11, 2007

Syntax-Brillian - Finally Something Happening?

Thankfully, I've been out of Syntax-Brillian (BRLC), a maker of LCD TVs, for quite a while now. For the past few months, the share price has continued to slowly decline.



However, things may be looking up for the little company.

I was always baffled with why investors hated BRLC so much; they are a growing, profitable company. However, some sketchy details concerning the company's business practices, suppliers, and inventory scared many people away.

Also, BRLC was being beaten at it's own game by Vizio, another maker of LCD TVs (and a private company).

A few days ago, an article was published in a local newspaper in Arizona detailing buzz about a possible merger between the two companies. Check out the article here.

The stock did not pop on this news; it may have been weighed down by news about the CompUSA sale. Plus, this rumor IS just buzz from one local newspaper - I am in no way certain that it will happen.

But I'm deciding to roll the dice. If any takeover, buyout, or merger is in the works, investors may be in for a multi-bagger. If not, I honestly do not know how much lower this thing can go; it continues to shed a few percent each day without any significant negative news. BRLC has enormous short interest; if any positive news surfaces (merger-related or otherwise), a big pop is possible. There has also been significant insider buying recently, possibly indicating increasingly positive sentiment or something bigger in the works.

But who knows - BRLC may continue to lose a dime a day until it's on the pink sheets. However, I still see a fundimentally-solid company, with a slim possibility of some explosive news soon.

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