Just Thinking about EXLN's valuation.
In this A.M.'s The Street.Com in Herb Greenberg's article I found the following quote about Versant by Scott Turkel of TCM Partners
>>"Versant, which he isn't so sure he'd buy again at any price"<<
From time to time I used to follow Versant Corporation when EXLN was ODIS. (Sorry ahhaha that I used the old name if you are still reading these posts.)
Versant Corporation designs, develops, and supports high performance object database management systems for commercial applications in distributed computing environments. The Company's core product is the Versant Object Database Management System.
Now I know that Versant was more a competitor to ODIS before they made the transformation to EXLN.
It is interesting to compare the stock prices of the two companies over the last 4 months. See the chart:
siliconinvestor.com
If one makes a more detailed analysis of the two such as sales growth, P/B, P/S Cash on Hand, etc. one can draw the conclusion that Wall Street by design or coincidence in a similar manner. I will not bore anyone with the details as they are easily available from the SI Profiles on both.
My conclusion is that "The Street" still looks at EXLN as an Object Data Base company and has not yet made the switch to EXLN as being the infrastructure builder for the growth in B2B.
Alternately or in addition, "The Street" looks at both of these companies with the same question: When will positive earnings occur.
I am asking the same questions. I have no question about their technology. Now comes the eXecution!
The past run up in stock price IMO was part of the B2B craze in a market environment that was "Everything is coming up roses." Now reality is setting in over the whole tech sector and earnings will count not just potential
I suspect that it will take 2-4 q's of progressively increasing Sales and Earnings for EXLN to start to get neat the stock prices that we briefly saw last month.
Finally, another "clipping from Herb Greenberg's column about valuations and he uses CSCO as the example.
>>Finally, Cisco kid: "Just in case investors are feeling that the market has corrected itself and valuations are once again reasonable, consider the following," writes one valued source. "For half a trillion dollars, an investor could theoretically buy either 1) Cisco Systems (CSCO:Nasdaq - news - boards) or 2) the entire gas and electric utility industry in the U.S.
In the first case, the investor would be buying a company with trailing 12-month revenues of $15 billion. In the second case, he'd be getting an industry that is paying about $15 billion per year of cash dividends. Oh, and with option No. 2, he'd have about $100 billion left over to go buy something else." <<
Bob T. |
