To All: New Short Sale Idea Rating T3/F
MSTR: Read all about it:
Mr. Pink speaks out on … Microstrategy
This company is an overvalued hype-job: it trades at 100x leading earnings. Its competitors, Hyperion and Cognos (both of which are significantly larger and more seasoned) trade at under 20x. Why is it prized so heavily? Because it has the ability to distribute its product on the internet, and because it can "push" its results (remember the hype about "push?"). But GUESS WHAT: Hyperion and Cognos have also released a web product, and "push" can be implemented without much if any work.
Microstrategy has revealed its weakness: Microstrategy seems to feel so poorly about its own prospects that is has launched … an internet retail strategy, that has nothing to do with its business of selling analytics tools to major corporations. What is the new business? It sends you (by EMAIL) stock quotes. Pretty neat stuff.
Microstrategy's product is in the data warehousing sector, which is headed for a spanking: Y2K companies (such as Keane) and ERP companies (such as Baan) have gotten spanked handily, as investors have recognized that corporate customers will be cutting back on IT expenditures as much as possible. Yet the products offered by Microstrategy (as well as Hyperion and Cognos, its competitors) are even more optional for their customers: before you buy something for analytics, you are going to make sure your business is not going to crash at Y2K AND that your enterprise software is upgraded (this is what you use to run your business). These data warehousing analytics products have been around for years, and customers have simply not demanded them in size.
Microsoft and SAP are coming: Microsoft, on SQL Server V. 7, will begin giving away many of the functions offered by Microstrategy. SAP is doing the same. Think about all those old standalone products that went away when somebody bigger decided to bundle them … (Netscape, Lotus, software utility companies, and many others you may never have heard about).
CEO is a psycho: Here's a quote from Michael Saylor, 33 years old, and CEO (if you don't believe me, go to global.forbes.com. "We have multidecades of growth ahead of us … We will have finished when we employ 20,000 or 30,000 or 40,000 people, and we're a $10 billion company, and everybody on the planet lives every hour of every day dependent on our technology."
All opinions are Mr. Pink's….Do your own research…
Mr. Pink
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