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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (49954)	11/3/2012 2:45:25 PM
From: E_K_S	Respond to of 78659

OT - I like your basic idea but maybe there is a potential value play there too. My thinking was to focus on those companies that have or are moving their product & services into the cloud. Icahn was rumored to be acquiring shares in Netflix, Inc. (NFLX). This is basically a "Cloud" service but really no barriers to entry. The one company w/ unique "cloud" presence is Google. They have a lot of government accounts (including schools, fire dept, etc) that use their unique cloud service applications (Maps, email Docs, etc). Many of the IT support people do have special certifications that administer these accounts (like CSCO certs) but GOOGLE really does not require that. That requirement typically comes from the enterprise organization implementing the cloud services into their organization. So, my value premise is to see if one or more of these certification companies are or have made significant entries into the "Cloud" especially for the enterprise customer. I do know that Google has been quite successful in gaining a large growing customer base that uses their "cloud" services. Maybe there is a company or consortium that provides partner certification programs. Cloud services are attractive since they generate large FCF, are now a growth sector and once built are easily updated and/or extended to several other platforms (ie. Android & MAC). As an example, Schwab has recently released a beta version of their StreetSmart Edge product that is run in the cloud. This project started by the need to provide a means to run Apple devises on the StreetSmart Pro platform but that was Windows based. Therefore, they built a cloud based service that can run on any browser. EKS

To: Paul Senior who wrote (49954)	11/21/2012 12:56:58 PM
From: Paul Senior	Respond to of 78659

CSCO. John Koligman, thanks for the reminder. I'll look at it once more.

To: Paul Senior who wrote (49954)	7/2/2013 11:48:57 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78659

ORCL @30.03$ - followed you and several other into this stalwart. It appears cheap based on current numbers 7.4x EBITDS, 9% FCF yield. I figure they can grow organically in mid single digits, reduce their sharecount around 5% annually and pay a small dividend (1.5% currently). That would add up to an expected return in the low double digits, which is not bad for a stalwart stock. Negatives are the concerns about future growth and encroaching cloud based solution into ORCL ERP turf. I am in with a small exploratory position.