BroadVision, Inc. (NASDAQ:BVSN)

sevenseaman (27.62) Submitted: 1/11/2012 11:28:38 AM : Start Price: $15.69 BVSN Score: +19.70

In 2005 BroadVision announced that it will be acquired by Vector Capital, a private equity firm, for $29 million, and that it will operate going forward as a privately held, independent software vendor.

In 2006 BroadVision Inc. BVSN a global provider of e-Business solutions, today announced the expiration of its rights offering as of Tuesday, November 28, 2006. Preliminary results from the offering indicate that participants in the rights offering exercised rights to purchase approximately 36 to 38 million shares, representing approximately 20 to 22% of the new shares offered, with total gross proceeds to BroadVision of approximately $16 to 17 million. BroadVision expects to announce final results and issue shares to offering participants within the next two weeks. Based on these preliminary results, with the capital raised from this rights offering, plus cash generated from operations, the company now projects its cash balance (consisting of cash and cash equivalents) as of December 31, 2006 will be in the range of $32 to $35 million.

In 2011 Lebed hypes this company due to its being "undervalued". Considering that this company revenue has declined nearly TEN TIMES from a decade ago and selling itself for .84 in 2005 however it didn't go through. Broadvision trades at a preminum to its cash flow, and prices to sales. At its current valuation it is also above its price to book value.

Usually, when companies trade on just hype and one holy grail in this case "Clearvale", the ballon will pop when the mass realize that the company isn't able to generate the returns that the market cap warrants.

After going through 2005 potentially selling for the company for under a dollar, and having experienced a major reverse spilt this company has not provided to the market that it is returning to its glory days. When the market realizes that basing its valuation on hype and keywords such as "cloud", "social media" and only seeing marginal revenue and continued losses in its business, it leaves a lot more questions than answers.