The Sysorex Situation

Thom Calandra |

SYSOREX: This is simple. If I am correct, Sysorex Global Holdings  (SYRX) , triples in price this week or early next.

Sysorex is a computer systems integrator in Santa Clara, California. I know some of the principals.

A long "quiet period" amidst its Nasdaq IPO and capital raising this year expires May 20. I expect quarterly sales and perhaps income in a report from the company by May 15. That's this week.

SYRX shares have been all over the map this year. I believe the market capitalization of Sysorex after its sale of approximately 3.3 million shares at $6 each in April is about $60 million. The shares are now $3.75 or so each. Look at the chart.

The dynamic: Sysorex CEO Nadar Ali and his team have been cobbling together systems integrators, big-data service providers, cyber-security operators and so-called enterprise clouds for a year or more. Companies with names such as Shoom, Lilien Systems, AirPatrol. When the latest quarter comes out, everyone who purchased the $6 shares in an $18 million net offering in April will expect to see a sequential pop in sales. Part of the "pop" will come from the amalgamation of the various companies. Part will come from Sysorex's government services business and Lilien's sturdy and decades-long provider of enterprise solutions to western USA clients.

The rest will be multiples magic. That's because if Sysorex can demonstrate a $100 million yearly run rate for sales (easy, I believe), with 20 percent to 30 percent quarterly sequential growth, the stock prices of comparable publicly traded companies will make "fair value" at least three times total sales, and perhaps 4 to 5-x, for SYRX shares. Some of these systems integrators trade at 10 times sales, with 20 percent sequential growth.

On the operational front, at least one of these purchases gives Sysorex Global reach into Brazil and Australia. The combined companies already have parts of California, Washington state, Oregon, Hawaii, Arizona and so on covered.

I met Mr. Ali at the LD Micro conference in November 2013 in Bel Air, Los Angeles. One of the better confabs for small-cap ideas I got to that year. I have known Geoffrey Lilien, founder of Lilien Systems, since our now-18-year-olds were three months old. 

I bought a few thousand SYRX shares amidst thin trading earlier this year and late last year, and sold some of those. After this report goes out, I will again be purchasing shares of the 1-for-two reversed SYRX (in April). If I am correct, and the numbers show hearty global and western USA growth, the computer services provider will be partying with its (mostly locked-up) IPO investors later this week. We will see.

Here are photos from our one-week Cabo Verde (NW Africa) investigation of real estate, casino licenses, solar energy, fisheries and hotels on the archipelago of 9 inhabited islands, and 19 sun-drenched islands in all. ​Cabo Verde as a real estate venture might become relevant to our TCR audience in early June. That is, if an operator, Cabo Verde Capital, ​succeeds in issuing public shares in North America, probably the USA OTC market, specifically the Pinks.

The principals of Cabo Verde Capital, including CEO John Duggan, say if that happens, the Pink shares via a June shell game with an existing OTC stock will be fully reporting to USA regulators. Mr.Duggan, who lives in Lisbon, says this casino and property venture on the island nation of 550,000 people anticipates listing on the Nasdaq small-cap market by year's end. I happen to believe that is optimistic at best and delusional at worst. Still, the Pink link is a possibility. No opinion yet on all this as I sort through materials. By the way, these country real estate gambits can be a horse's a** to navigate. One thing is for sure: Cabo Verde in its 39th year of independence from mother Portugal is lovely. Whether beach casinos will invigorate foreign direct investment remains to be seen. See the previous TCR report.

On the snapshots, these are mine

​These are superior, and they are from ​a Lugano, Switzerland hedge fund manager, Geoff Baker:  

​These are exquisite, and they are from a German investment banker and investor relations principal

For holiday minded TCR family members, check out some of the video. And here.

What I owe you: 1. Latest travel schedule (considering Montreal at end of May for graphite and titanium; Colombia for CMJ, see here later); 2. Part II of a look at an algorithmic portfolio of sub-$1 billion market cap companies that a University of Southern California statistics and math graduate has developed in an incubator -- Marina del Rey. 3; My thoughts on Colombian Mines' thick gold-grades (early days?) at El Dovio in Colombia; I own shares of Gloria and Bob Carrington's Colombia project generator and have seen many of CMJ's ($CMJ:CA) Colombia minerals projects, but not El Dovio; 4. a whole lot more, including further thoughts on Cabo Verde, further thoughts on TCR 8 member Colt Resources ($GTP:CA) after spending time with CEO Nikolas Perrault in Portugal and Cabo Verde last week, and more original reporting on TCR 8 member Cambodia prospector Angkor Gold ($ANK:CA).

Those who want to parTAY and partake in a Cambodia and Laos tour of minerals properties in late November, see some of the sights, get a handle on how to conduct gold mining and community outreach -- ping me please. I will be there. 

Quote Of The Month: This from the next-door neighbor of our late Papa's -- in Greenbrae, California -- at her 100th birthday party this weekend during a Sausalito restaurant luncheon attended by 25 friends (at The Spinnaker restaurant on the bay): Helen's favorite toast, which she pronounced in a toast to those present: "Here's to you, here's to you, here's to you. You might think you're upper class, but you're just a horse's ass. Here's to you."

Finally, I advise everyone, if they are into social media and its potential fairy dusting of equities, to regiater at both and See links below. Something is happening, and I wish knew what it was. I'll get to the top of it. In the meantime, make sure you tag me as a network friend in the respective services.

Oh yes, and thank you for what has been a splendid reception of our $20 add-on service for TCR family members: TCR Blips. Once again, this is only for those of our TCR family that cannot get enough of this material, and want forwarded materials twice or three times weekly. Our best and brightest reporting always go to TCR family members first, then to our media partners:,, and TCR Blipsters, as we call them here at home, receive files, forwarded releases, notes, tips on marlin fishing, slide shows and off-the-wall investment propositions.  


​T​hom​ Calandra​


**$110: Will Recur Yearly

@thomcalandra for Twitter

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
MRNJ Metatron Inc 0.00 0.00 33.33 162,047,478
SYRX Sysorex Global Holdings Corp. 0.21 0.01 5.48 167,663


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