Saba has too many issues and here again lies a problem.
Earnings were due out Friday January 04th, 2013, and gets delayed until today Monday January 07th... Wrong, now earnings are slated to be released tomorrow.... IMHO, more delays, more issues, and an 8% profit margin if that, just does not cut it...
Assuming the company has grown at all since the last report, which was over a year ago, the multiple is still very low. Just around 2x revenues. If they had any growth on the SaaS front and/or generated any cash, then the current multiple is probably even lower than 2x. It is a cheap stock by most measures. That is why the stock price has held up. I would not assume, however, that the absence of further selling is an indication that everything is OK at Saba. Saba management is genetically predisposed toward killing shareholder value.
Just the fact that they are not reporting and have accounting issues for a while now and the stock is not tanking means they are doing just fine. As far as your 8% profit margin, I don't know where you get thatinfo?? Software companies have 50 to 60% profit margins cuz they don't built product or have manufacturing facilities, hardware, excess parts, waste,etc.....The stock will hit over $20 by next year or be taken out by aquisition.
Why should anyone listen to you? Read the following:
Great stock to own!!!
by greeninvestor21 . Feb 28, 2002 1:11 PM . Permalink
This is a $20 stock by Dec.. Count on it!!!!!!
Since the company did a 4-for-1 reverse stock split since the time of your 2002 post, what you were actually predicting was that the stock would hit the equivalent of $80/share in today's market!!! The fact is, it never got over $20/share (pre-split) after your post and it has since fallen 85% in value from the day you made that prescient call to today.
So, I guess you're just not a very good market timer, eh? Is falling 85% in value the hallmark of a "Great Stock to Own"?