MDLA

Summary Enterprise software turned in a spectacular performance in 2020. My tea leaves suggest that the space will continue to outperform broad indices in 2021. I think a reasonable portfolio should focus on those companies who experienced demand headwinds in all or part of last year. I have taken a portfolio approach to making recommendations.…

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Buying the dip

The last few trading sessions have seen a rather significant reversal of investor preferences. Risk-off is ruling investment sentiment and has pulled down many high-growth IT names by as much as 20% in a few days. Losses, as is typical in a panic, have been fairly indiscriminate although the names with the highest EV/S valuation…

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Although earnings reports will not be coming out in the next few weeks, there is still lots of news and some interesting opportunities. As is obvious, the market as a whole has been under some pressure for a few days, and that pressure has been focused on mega-cap IT names for a variety of factors.…

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Tech stocks, after a multi-week rally are pulling back rather sharply today. The CLOU index which had been up 12.4% since 8/1 has dropped 6.5% today. There is nothing particularly special about today. The economic data has been strong, particularly the new claims metric and the ISM Services number. But some investors for various reasons…

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Those readers/subscribers who follow software companies, will often be drowned in jargon that might make sense during interviews with management or conference calls, but whose meaning seemingly  disappears into the mists of day, once a reader is  trying to evaluate what a company does. I confess to often being baffled by jargon and needing a…

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Medallia (MDLA) Medallia has announced the pricing of its IPO today, and at the top of the contemplated range, the enterprise value is about $2.2 billion. Medallia’s most recent reported quarter, which shows results through 4/30, had revenues increasing by 33% to $93 million. As noted in my article on Medallia, that results indicated significant…

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Summary Medallia filed its S-1 last week. The S-1 reveals a story of accelerating growth and a remarkable improvement in the business model. Medallia is the leader in providing software for what is called Customer Feedback Management. Medallia’s rival, Qualtrics was sold prior to its IPO to SAP at a valuation of 20X revenues, or…

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