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To: Bill Harmond who wrote (56620)	2/22/2014 9:20:45 PM
From: Lizzie Tudor	Respond to of 57684

WDAY is kind of a tell for potential for all the new cloud companies, too. WDAY's earnings are coming up next week. WDAY mkt cap about 17.5 billion on estimates of $137mm in revenue for the quarter. This is probably the upper band of cloud company valuations, since WDAY is a premium brand. So looking at FEYE, also a cloud revenue model with estimates at 70mm for the Q, we would expect a market cap of $8.5 billion which is where it is trading. Next week, if WDAY gets a pop, maybe every cloud company will get a pop. They tend to sell off immediately after the numbers since the revrec is so complicated on these. But then in a week the analysts chime in.

To: Bill Harmond who wrote (56620)

3/9/2014 4:11:03 PM

From: Doren

Read Replies (2) | Respond to of 57684

SPLK and FEYE, you guys have me interested.

SPLK - I think very few people have any idea what they do. Most people would say "What the hell is indexing log files? And why would that be profitable?" including me. Then I look at the 9.5 billion market cap and the % of the stock owned by insiders (29%) and institutions (81%) and I'm thinking "Someone understands what they are doing."

Ignorance can be very profitable. Like when Apple went UNIX, very few understood what that meant long term.

FEYE - A little easier to understand, but the average guy again probably doesn't get it. FEYE's competitors, according to Yahoo, are Cisco and Juniper neither of which concentrate solely on security.

I'm a security fanatic. Main reason I own a Mac. I see security as one of Apple's biggest assets IF they play it right. A few more breeches like Target, so that when people actually know someone who has gone through an identity nightmare... security is going to get the attention of the public. Big time.

Thinking about it, companies hire security guys and pay them in the low to middle (?) six figures. In any case quite a bit, because their knowledge and skill sets are so arcane and very few people are up to understanding the mind bending complexity of the logic and code with which they deal. Corporations are a little lax on security I think, it doesn't make them money, they feel they are doing enough.

On the other hand a person with a similar skill set, in Russia, who doesn't have the same kind of access to corporate jobs, stands to make millions of a successful exploit, probably tax free, and probably with little or no risk of criminal prosecution. And the Russian mob is willing to help with financing.

I'm assuming from these insider buys are mostly options diluting the float but no one seems to be selling.

finance.yahoo.com

That's a good sign I think.

QUESTION:

Sep 25, 2013

SC XI MANAGEMENT LLCBeneficial Owner (10% or more)

21,622,411

Indirect

Acquisition (Non Open Market)

N/A

I'm assuming a beneficial owner if a venture cap considered to be insiders. Correct?

One more thing about these two, other chat rooms. You can tell how many people know about these companies by the amount to chat rooms and posts.

SPLK

InvestorHub
siliconinvestor.com
One follower, 10 posts

No InvestorVillage thread

SI thread - one lonely guy - maybe we should keep him company he seems to be hip to the cloud thing
Subject 59401

FEYE

InvestorHub
siliconinvestor.com
7 followers, surprising number of posts

No InvestorVillage

SI thread - One lonely guy
Subject 59363