How does this company have a market cap of $195M ($18.25/share)? Didn't anyone read the S1 registration or look at the performance trend?
2010 Revenues: $46.6M
2010 Loss from Operations: $12.8M
2010 Net loss attributable to common stockholders: $56.6M
This company has real competition from Taleo, Saba, SumTotal and many other larger firms. I have not heard anyone say that they have a better product. Even with the pro-forma adjustments, there is no way this stock can stay anywhere near $18. My estimate is that it will hit $5 after the first two quarterly earnings statements.
be very careful shorting this. im not long or short but if the numbers point toward any real expansion u could get caught. i've seen a lot of these platform companies reach for the skies in stock price, seemingly not making any sense. jmho
Finally someone that actually knows what they are talking about. Nuckleheid is absolutely correct about the strength of SFSF with Plateau. I would suggest that SumTotal has as good an LMS as does Plateau, but the combination of SFSF and Plateau without a doubt will be formidable for CSOD. I see no way CSOD can compete in this market with so many better and less expensive offerings.
Silly comment and basically untrue. The acquistion of plateau by SFSF doesn't leave only 2 lms vendors. It means that there are the same number. Given that SFSF didn't have an LMS the only difference is that Plateau's name has changed. Plateau was purchased primarily for for their LMS.
What has happened is that the number one PM vendor acquired one of the very best LMS vendors creating a pretty forminable competitor to the remaining companies. The new product suite is unsurpassed.
This acquisition creates a pretty big problem for csod and saba.
Well the stock might go up a little tomorrow as the LMS space is being gobbled up. Blackboard announced received a bid to be acquired and today Plateau announced it will be acquired via Successfactors for 290 Mill.
Only 2 LMS vendors left:
Saba: Market Cap 280 Mill
Cornerstone: Market Cap 850 Mill
Wow - thanks that is interesting...Just like Concur. ADP does buy everything up and lets be honest CSOD is just anohter rinky dink vendor. Maybe the LMS clients and future contracts are real - but really some of their other offerings compete with firms that focus their core on these serivices and some of the stuff is really simple social media type stuff. Also...LMS is SOOO boring.
Interesting mention of adp. csod and adp have a partnership where adp resells and provides leads to csod. it is generally known that adp is the source of 50% of csod's biz. csod spurned adp's acquisition in favor of an ipo. given adp is on the hunt for additional apps for it's talent mgmt biz (bought workscape a few months ago) you would wonder how long it will be before adp acquires what they currently get from csod. bye, bye leads...
I looked at your link and that is public information...pretty much this company has a bunch of big lms clients and according to the risk section of the published sec doc - our business depends substantially on clients renewing their subscriptions to our solution, purchasing additional platforms from us and adding additional users - so to me its an ADP tpe thing...if you use payroll you will also buy 401k and time and attendance etc - however who knows if the other platforms are decent or what the market needs.
You hit the nail on the head. I will give it 120 days until your forecast comes true. I guess the investors failed to read the S1A:
Clearly the more revenue this company makes, the more they are going to lose. No business model.