Taleo Corp (TLEO)

Taleo sells talent management software that is supposed to help organizations in the "war to attract and retain talent". I imagine that this company's products have become less attractive in the current job market. This is another company that built its business by overpaying for intellectual property. As a result, the company has $132 million in goodwill and intangibles on its balance sheet. After subtracting goodwill and intangibles, we see that the company has only $40 million in tangible book value versus a market cap of $525 million. Historical earnings are low. Thus the company currently trades at a trailing p/e ratio of 43.5

PER IBD TOP RATED STOCK IN GROUP PEG 1/3 E97 RS94 STOCK PRICE AT $15 AND 50DAY JUST CROSSED 200DAY ON INCREASED VOLUME AND HEADING UP.

Workforce management has become increasingly important and Taleo is a leader in the space

like to go for cinches. I like to shoot fish in a barrel. But I like to do it after the water has run out."- Oct. 2003 talking with Wharton MBA students

-Buffett

price has pulled back to support. a bit pricey in terms of PE but with a tight stop worth the risk

I'm in the recruiting field and have been hearing a lot about them lately. They are miles ahead of their competition and have a strong reputation in the industry. The software does what it's supposed to do without being overly complex, and the price is right.

Growth Potential

The focus of Taleo is human relations, specifically screening, selecting, hiring, developing and assessing employees. They have solutions for enterprise customers and small and midsize businesses, for salaried workers and hourly workers. So far in 2007, Taleo has gained four analyst buy recommendations and one neutral rating despite not being profitable. This stock is all about growth and they have been signing up large and small customers at a rapid pace. The company has invested heavily to create an end-to-end solution set and to ensure its infrastructure can support the million or so users that hit its site each day. Profitability is expected to be right around the corner.

It has been going well and there are only positive news coming from Taleo (Finances, Product, ...)

I look for stocks that have the ability to dominate a growing niche. I believe that online software as a service is a growing sector and that hr is a growing niche within that sector. Taleo looks positioned to dominate this niche over the next couple of years. I don't know of anyone who could impact their sales significantly so as long as the niche continues to grow, TLEO should do very well.

looks good

Companies are attempting to optimize their workforce and it looks like a good product with good service. The profitability looks good, and the services would be more in demand during an economic downturn.

Still lots of room for penetration into SAAS space in HCM.

Needed with increasing demand for highly qualified workers

The whole software as a service thing just works.

Being in the HR/Recruiting field, I have hands on experience with this product and it's very good.
The down-the-road cost savings alone are excellent (as this software kinda/sorta eliminates the need to go outside of house/pay search firm or agency fees for candidates).

Technically speaking, this software is all-inclusive, so unlike most Fortune 500's that use 2-3 tools or separate databases to post openings, track, align, and process candidates... this handles everything from soup to nuts in 1 system. Including a direct link w/ hiring managers and a very seamless process that everyone is looking at the same thing and everyone's steps are accounted for without TOO many confusing bells and whistles.

I worked for a Fortune 50, a very large one at that that had many sep. operating companies throughout the USA.. and seeing 1st hand how Taleo can tie everything together and execute well, I would buy it if I was an HR manager re-vamping process. Others don't compare, I've used them. Taleo is also very good at leveraging references and their large-scale client list in pitching/selling to new customers.

becouse motley fool push

great product which is gaining marketshare

New uptrend