Ellie Mae (NYSE:ELLI)

CAPS Rating: 5 out of 5


Player Avatar TMFInnovator (39.54) Submitted: 4/17/2013 11:23:25 AM : Outperform Start Price: $23.14 ELLI Score: +45.92

- Rapidly growing user base (+40% yr/yr) that is adopting the Encompass software solution.
- As users become more comfortable/familiar with Encompass, switching costs rise and # of transactions/user increases (revenues to ELLI).
- Asset-light business model that is easily scalable.
- Huge addressable market that is in flux due to increased regulations. Increased regulation is good for ELLI business.
- Network Effect: The Ellie Mae Network becomes more valuable as more users subscribe.

Full Overview of my bullish thesis:

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