Today, basicly sums what happens in the rest of the world except China- NCR paid about 3x sales for the Company and it's basicly massive trend of large players buying niche players in the sector- In China - this has not happened and it's murdered valuations because you need to sell to somebody to determine price - as pointed out most players are 2-5x sales . If software companies were being sold at 2x in China efut would trade at min 1x sales or 8-9$ - you need to start seeing consolidation in China and lot people think next year you could start seeing it but that's how you get price discovery . In other news , SAP plans to invest 2bill in china by 2015 and plans or hopes a dual listing in China next year - it will be interesting if SAP or big HK software companies start buying niche software companies to broaden there portfolio - efut is a niche player that Should be sold to a large ERP player- you can argue when or what price in the future or with China never . With China it's always tough to figure things out because your at 100% mercy of the CEO - good luck
Oracle makes a big bid ELOQ cloud business- about 800mill deal or 8x sales -With SAP,ORCL-Ect -expect a ton of more deals- In China, they need to figure out how it works and maybe they can make some money- Meaning the big boys control the market and they buy all the little guys at nice premium because they can justify because of their scalability.