To be honest Slave, I think there are far better stocks to pick on then this one.
NUAN is currently trading on potential (I honestly believe it is a killer ap for wireless web, I have sampled TellMe as well as trade with Fidelity who uses NUAN software, and was amazed at how convenient/well it worked). Sure you could call it overvalued based on its current financials, but their technology clearly has several applications. Imagine how much companies can save automating their sales force, customer service, etc. The technology is finally getting to the point where it works well unlike before where there were processor constraints.
TA-wise, this stock trades very similarly to RBAK, JNPR, ARBA in the early days after their IPOs, relative strength was tremendous, increased buying activity on any dips, and moves with/without the market. This signals to me that this thing is currently under heavy institutional accumulation. Finally, I wouldnt call a Market Cap of 5 billion cheap by any means, but I dont think it is out of whack with other young companies in an emerging industry. Again, ARBA and RBAK had even similar (and maybe even larger) market caps on similar revenue figures in their early days, so its not out of line by any means, and could easily grow much more from here. (Note, I am not citing ARBA and RBAK for any similarities other then the position they were in when they IPOed as young companies in an emerging industry).
Look forward to comments/rebuttles.
Cap
P.S. For some reason, this didn't make it onto the wires, but I think its pretty significant that Sprint PCS launched a new service using NUAN software to enable customers to access an online directory which they create using their cell phones, this is only the tip of the iceberg in terms of applications. Check it out...
s5.sprintpcs.com |
