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HALO |
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HALO Technologies Holdings, Inc - formerly Warp Technology Holdings - is a company in the midst of significant and fundamental change. This one deserves some of your time to take an in depth look at it. They have an established track record over the past18 months of buying Enterprize S/W companies at bargain prices. If they are able to continue to perform as they have recently they should be a BIG winner. This is a company that had less than a million in revenues just a couple of years ago that expects to do 100 million or more this year (and they are on track to do it). They have been able to get backers and secure financing and have a very impressive track record.
Here's the guidelines for recently acquired companies.
1. They are all in the enterprise software industry, because that is where they believe their competitive advantage for identifying deep value lies;
2. They all generate 25% or more (as a percentage of revenue) in trailing twelve month EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization and before any management fees or distributions to the parent company);
3. They all derive at least 40% of their revenue from software maintenance;
4. They were all acquired for less than 5x trailing EBITDA;
5. They are all stable businesses that have been operating for over five years; and
6. They all have an established base of long term customers.
The next few quarters should be very interesting. If they can continue to grow like they have over the past year this should be an exciting (and profitable) company.
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