+ Watch BSFT
on My Watchlist
this could go either way... worth the risk
I can pick them with the best most of the time,but their are times I also can stink it up
Broadsoft (BSFT) is rated as an over perform.This stofock has performed poorly over the last month, losing 21.25% but has good fundamentals and has the potential for a strong upside.Broadsoft had an increase from $4,138,000 two quarters ago to this last quarter to $5,645,000. Both are far below the previoubelow three quarters ago of $12,006,000 giving solid support for the stock's potential upside.
Broadsoft is a voice only technology while skype and google are offerring voice for free. The major carriers are partnering on voice with the OTT players, which will deplete BSFT's longterm prospects.
Weak sauce technology, absurd valuations, recent IPO. Super-competitive space will make maintaining even 15% ROE impossible.
Even though P/E is very high, north of 130 this is a great company. May still go up another 50% from here. Stock has pulled back 28% of it's 52 week high from two weeks ago.
Found from TMFBaboPersonal Scoring:Category Personal ScoreGrowth Rates % Very HighPrice Ratios Very LowProfit Margins % LowFinancial Condition HighInvestment Returns % HighManagement Efficiency LowTotal Score Very Low
Short term it's definitely a sell. Long term though it has huge potential. VoIP is the future and if they can continue to blow out earnings they should be in great shape.
Unsustainable, especially with the heavy pullback I expect to come soon..
Gave this some of my own due diligence after some CAPS experts brought it to my attention. I don't see how the stock will continue to trade at these values. GS just raised expectations to $23 (for disclosure purposes).
This one is out of control !!! Small company with average growth, by no means do the fundamentals justify the price action. Though they rarely do. After the secondary, the potential existed for Goldman and friends to run the shares into the lockup period and today's action should've been a little more drastic to the downside. To think shareholders would not want to take a profit on a chart that has no business being at these levels is insanity. So either, its a waiting game where shareholders wait so they don't have to pay capital gains for 2010 and the selling begins in January, or some selling comes in that sparks the sell off for fear of losing the profits. Orrrrr somebody knows something the shorts don't and the shorts get smoked. Thoughts anyone???
This is a 10 year old company that has been selling hosted VOIP (read CLOUD based) service to Verizon, FT, Cox, Singtel and a number of other tier 1 CSP's. Their margins are excellent, forecast visibility is good and more enterprises are turning to CSP's for cloud hosted VOIP - and BroadSoft is the undisputed king of the space.
I am short at around $19 and it is starting to get a bit unpleasant at $22.5, but if it were not for portfolio balancing considerations, I would average up in the next few weeks without much hesitation. You can all easily find the most recent earnings, book value ($1.25) and P/E numbers, so I’m not going to get into that, but I will make a little observation about Jeffries & Co.Earlier this week Jeffries increased their price target on BSFT by a remarkable 92% from $12 to $23 (see below) and the stock rallied again towards that new suggested peak. This generous reassessment was not because of some new groundbreaking cloud (<--- CLOUD…mmm…it MUST be a good company) technology, but rather due to “continuous progress toward its long term operating margin”. Quite a revision just five months after the IPO.OK. Let us now turn to the IPO prospectus, page 153 (see again below), where we will find that Jeffries was the second underwriter for BSFT with 1,95m shares. The IPO priced at $9 in June and there were very few days above this price until Nov 8. Since then, after a big jump on earnings, the stock has been constantly pumped up on decreasing volume, sometimes with gaps of 5% with just a few thousand shares, after which a greater number is sold into strength. Under these circumstances I simply have to wonder how much of this is price manipulation before the end of IPO restricted period in early December and how much credibility does Jeffries have.Mixing into this some end-year tax planning, the downward pressure on BSFT should rapidly increase two weeks from now, when the new volume kicks in. I'll stay short for now.--------Jefferies Sees Upside in Broadsoft (BSFT)By BenzingaStaffJNovember 22, 2010 9:20 AMJefferies maintains its Buy rating on Broadsoft (NASDAQ: BSFT) following its review of BSFT stock.In a note to clients, Jefferies writes, "We do not expect any incremental investments that would divert the company from continually showing progress toward its long-term operating margin target of 23-25%."Valuation is 4.1x EV/2011 sales relative to a peer group average of 5.9x calculated on an EV/ssales basis. Jefferies is increasing their price target from $12.00 to $23.00.BSFT closed Friday at $19.16.--------UNDERWRITING Goldman, Sachs & Co. 3,900,000Jefferies & Company, Inc. 1,950,000Cowen and Company, LLC 825,000Needham & Company, LLC 825,000Total 7,500,000…The company and its officers, directors and holders of substantially all of the company’s common stock, including the selling stockholders, have agreed with the underwriters, subject to certain exceptions, not to dispose of, pledge, or hedge any of their common stock or securities convertible into or exchangeable for shares of common stock during the period from the date of this prospectus continuing through the date 180 days after the date of this prospectus, except with the prior written consent of the representatives… …The 180-day restricted period described in the preceding paragraph will be automatically extended if: (1) during the last 17 days of the 180-day restricted period the company issues an earnings release or announces material news or a material event; or (2) prior to the expiration of the 180-day restricted period, the company announces that it will release earnings results during the 15-day period following the last day of the 180-day period, in which case the restrictions described in the preceding paragraph will continue to apply until the expiration of the 18-day period beginning on the issuance of the earnings release or the announcement of the material news or material event.
In the clouds recently - suspect downpour down the road from $17.04 level
I don't think this is a good company, but there is defintely potential for profit in the 2-4 year range while CLECs and Wireless providers still have to worry about Class 5 services.
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