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ClickSoftware Technologie (CKSW) Message Board

  • sirirep sirirep Feb 4, 2013 2:29 PM Flag

    Parajacobsen

    CRM is losing money and is valued at 25B$.

    earnings PE is not a meaningful metric when you are dealing with Growth companies.

    look at the amazing growth the company is showing.

    the stock will be back above 10$ soon

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    • The reason salesforce is losing money is that they are spending a lot of money on marketing and sales and growing the top line at the expense of the bottom line. The argument is when that stops there will be all this profit for shareholders from just existing sales. That doesnt mean salesforces share price wont come back down when the growth levels off. And click right now is NOT showing "amazing" growth instead we are being told future growth will be amazing. Whether that turns out to be true can be predicted with the flip of a coin. Click is NOT CRM. but you assume it should perform and WILL perform like CRM. Good luck with that.

    • Sirirep,

      Thank you for your comment.

      Quoting Salesforce and its common equity, CRM, you wrote: “CRM is losing money and is valued at 25B$. earnings PE is not a meaningful metric when you are dealing with Growth companies. look at the amazing growth the company is showing. the stock will be back above 10$ soon”

      I assume that you are writing in response to my posting in which I responded to another poster who was asking the $8 now, $8 years ago question, i.e the question as to why or what makes you think that the CKSW equity is valuable when it has essentially gone nowhere in two years, or so, although it has been exceptionally volatile during this period — a quite valid question to my mind.

      I appreciate your comment, but unfortunately, I cannot respond to it at length on the message board since Yahoo's somewhat cumbersome user interface is restricting the posting.

      Your point is valid, however, and since I appreciate any feedback, I have responded in a special section on my EngineeredReality blog. If you are interested you can go to the blog and look in the Open Threads section (you need to google for engineered reality wordpress pajacobsen)

      I apologize for the inconvenience, and I look forward to hearing more from you in the future.

      Best,

      pajacobsen

      • 1 Reply to perajacobsen
      • Dear pajacobsen

        I too read your response on the blog you keep, I must say though, I was disappointed. I was hoping for someone to finally explain to me why CRM is so valuable, but alas, perhaps that just isn't possible.

        I think for your CKSW analysis, you need to put a few more factors on the table besides just EPS as there is more to a stock's value than EPS as CRM has surely shown the world.

        CKSW is a profitable company growing at 20+% per year paying a dividend yield of nearly 4%, has nearly zero debt and almost 2 bucks per share in cold hard cash/near cash assets. It is the leader in its market niche and has a list of Blue Chip customers that all the IBMs and SAPs of the world highly value making CKSW a very attractive company to acquire.

        You could of course find companies whose PPS is justified by their EPS... you might also site companies whose PPS is justified by their Dividend Yield... but the combination above is rare indeed and dare I say, even CRM is missing a fiew of the attributes... Just sayin...

        Cheers

    • so click should be valued at 26 billion then since it makes a profit.

 
CKSW
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