Saturday, February 4, 2012

Research Report SREV

The research on this one might have been a little light as I am tired from a cold and physical labor. SREV helps businesses collect money owed to them, only charges them for improvements. Many large companies use them. I did not read IPO documents, seems like they are expanding overseas, perhaps the money was used for this. They have grown 30% this past quarter, not very profitable yet, still showing an accounting loss, right on the cusp of a profit. Currently above the IPO price, but has a bearish tail suggesting short term pull back is due. Leadership seems to be drive by one man, guided by others with lots of experience. Many of management helped other IPOs and techs such as Juniper...

I understand the story on this one, don't really find if attractive right now. Like others I will follow for a while, I feel better about this one than others.


  1. You obviously need to do a little more homework. SREv was the #3 top performing stock of 2012 and they beat guidance for three straight quarters. The company manages recurring revenue renewals for tech-based companies. Tech companies fail miserably at this internally. Srev has cracked the code, obviously, and they really don't have any serious competition. There is over $250 billion in recurring revenue that can be managed they way the current market is sized and Srev has over 75% of the current market share with over $7 billion under management.

  2. Hey, thanks for sharing, had no idea anyone read this. Anyway, from an IPO price of around 12 to a closing price around 15 (for 2011, not 2012) well if that got to be the number 3 performing stock of the year, great. But here is the thing:
    1. The research is to develop an understanding of a company such that I can sit through short term market panics. One day does not this comfort bring.
    2. It is tough to argue for a company showing an accounting loss.
    3. I think their website suggests 5 billion serviced.
    4. I like the management, business model, future potential.
    5. I judge this short term due for pull back based upon candlesticks.

    Don't be anonymous. The weight of what you say can be better judged knowing who says this.