Autodesk, Inc. (ADSK)
A design software and services company, which offers solutions to customers in the architectural, engineering, construction, manufacturing, infrastructure and digital media markets.
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Downthumb. Slowing growth. Lower quick ratio. Low debt. Competitive pressures. Very high margins that could slip. High cap-ex. of 68%.
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valuation
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Autodesk has diversified from offering a single CAD solution to having several platforms to offers. Also, their recent acquisition of ALGOR and Moldflow software allows them to sell ancillary products to owners of competing CAD software.
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http://news.morningstar.com/articlenet/article.aspx?id=271973
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Looks really overbought. P/E and all other value metrics are excessive. Good company, but fundamentals do not support the valuation.
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Cyclical action in an uncertain market in an adverse environment.
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Designing the Future!
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Civil 3D baby
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ADSK is the market leader and there will be plenty of CAD work in the next couple years
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Autodesk's main advantage in today's market is its foothold in colleges. If any engineering, agricultural, etc. wants to hire a person who has been through college, the company must use Autodesk's program or suffer the costs of retraining its employees to use another program. Once the company is hooked onto Autodesk's program, there is a high switching cost along with the retraining cost of the company's employees. In turn, the retraining costs and its foothold in colleges give Autodesk a wide economic moat in today's market. However, Autodesk's wide economic moat is in today's 2D market. They still do not have a wide economic moat in the 3D market of tomorrow. As companies start to switch to 3D imaging, they will inevitably choose a cheaper, easier to learn program like Dassault's or another competitor's product.The companies that have already started switching to 3D have gone with Dassault's program. Autodesk will still have a wide moat in the 2D market, but most likely, the 3D market of tomorrow will go to some other company.
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Great tools.
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#47 Best Corporate Citizen
http://www.business-ethics.com/node/75
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Member of the real Motley Fool portfolio.
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With all the stimulus money going to national infrastructure AutoDesk's CAD software is being heavily utilized to render bridges, roadways, etc.
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Best in class, totally undervalued. CEO bought (not awarded but bought with his own cash) 25,000 sh @ 12 =300K. Almost doubled but think it could double again.
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This company is top in their industry (autocad). It will outperform.
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This company owns both Maya and 3DSMax, 3D modeling software. They have a virutal monopoly on software that is used heavily in computer gaming and in the movie industry.
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I use AutoCAD on a daily basis at work in the heavy construction business. In my opinion no other software comes close to providing the flexibility and functionality that I need from drafting/design application.
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They know how to execute and will benefit from the recovery more than most
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Morningstar 5 star rating with fair value estimate of 28.00. So looks underpriced. Have long position and sold one put contract to see if I could pick up some more at good cost/share price.

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