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Pegasystems Inc. (PEGA) Message Board

  • chris091750 chris091750 Apr 16, 2009 6:42 PM Flag


    Continuing to defy gravity and go up, up and up.

    Question. Is it getting to far ahead of itself?

    TTM multiple of almost 66 is high, and the forward PE (betting on the come) of 29 is not cheap. I am starting to wonder. I have been very pro-PEGA, but that was at the $15-16.50 range.

    Might be time to take some money off the table.
    Thoughts anyone?

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    • I like PEGA. But, I put in a limit order to sell at $19.75 and then PEGA went down. But, with its volitility I have left the sell order in at $19.75. That will be a double of my purchase price.

      Also, if PEGA drops back I would probably buy more. They are one of the leaders in their space. With products that work. They are heavy in FSI, and with the recession there is risk that they could miss a quarter, and if they do, with there high PE, they will fall. So, for now I am holding.

    • outstanding!

      PEGA is the leader in bpm (business process management) software. The company has very rich & robust capabilities with many customers (health care, retailers, insurers, banks, gov't, mfg, communications and numerous
      other industries) that continue to use PEGA's very useful, extremely cost efficient and winning technology over & over again via add-on purchases. And PEGA is not even close to exhausting their capacity at those organizations. PEGA just continues to grow while so many software firms are slowing.

      This is their third straight year of excellent growth and every quarter in 2008 broke a sales record for them. PEGA has an extremely strong cash flow with $170 million in the bank, despite the regular dividends they've been paying for the last few years plus the $50 million they've done in stock buybacks.

      They've invested a lot of money in R&D and have very carefully worked to grow this company. They are totally commited to expanding their market-leading technology. They even got Craig Conway to join their Board of Directors last month - great asset to PEGA. Craig has proven his ability to guide companies through dramatic growth. He's an overachiever, and his distinguished and extremely successful career in the technology industry is well established. Look up his bio - can't get more impressive!

      PEGA's chairman & CEO (Alan Trefler) is no slouch either. He got his degree in economics & computer science from Dartmouth and at the age of 19 he was co-champion of the 1975 World Open Chess Championship. A few years ago he played chess against 25 software programmers all at the same time. All of the boards were put in a circle and Alan walked from board to board. In the end he won 24 matches and drew one!!! This man KNOWS HOW TO MAKE MOVES!! PEGA will fare very well with him at its helm.

      I've always loved this stock. Have held it for a long time (keep adding to my position) and have never sold. I just got a new puppy and named her "Pega".

      You do the math Chris.

      • 1 Reply to toby20002001
      • Thank you for your comments.
        To be clear, I like Pega. I loved it at $9, 10, and 11, and brought more at 12, and any time it dipped down. But, when it hit $19, I was wondering if it was time to sell some, lock in profits and not be greedy.

        Right now I am still considering it. Because when PE's get very high the risk of holding when the company ONLY meets expectations is high. PEGA has been clipped before. So, right now I am holding.

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