Splunk (SPLK) IPO Sees First-Week Surge of 113%

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					Robert DeFrancesco’s
April 21, 2012

Splunk (SPLK) IPO Sees First-Week Surge of 113%
Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or your
Kindle for iPad/iPhone reading app.

See the April 2012 Table of Contents and order the issue here:


We found out this past week that the enterprise-focused tech IPO is alive and well.
The three big offerings that I previewed at the start of the week all opened up from
their IPO prices:

*Splunk (SPLK, $36.20)—IPO price $17, opened at $32 +88%
*Infoblox (BLOX, $21.30)—IPO price $16, opened at $22.50 +41%
*Proofpoint (PFPT, $14.08)—IPO price $13, opened at $16.85 +30%

Of the three, Splunk, a Big Data play, had the largest first-day surge, managed to hold
its opening price and finished the week 113% above its IPO price. Splunk’s current
market cap of $3.4 billion gives it an incredible trailing price-to-sales (P/S) ratio of
28X. Even if revenue were to double this year, to $242 million, the forward P/S
would be 14X.

Why the interest? Splunk is a specialist in analyzing machine data, which is all of the
back-end data being churned out by websites, machines, power meters, appliances,
cars and equipment. This data, both structured and unstructured, provides
important insights into what’s going on behind the scenes. Customers use Splunk’s
solutions to improve efficiencies and drive revenue growth.

Splunk is well positioned and has the potential to grow into a much larger company.
But I am concerned about the valuation and the lock-up expiration in six months.
Also, there is the possibility of a follow-on stock offering because demand for the
IPO was so high (30X over-subscribed).

The April 2012 issue of Tech-Stock Prospector is now available at (subscription required), in the Amazon Kindle store (this
includes the Kindle for iPad/iPhone reading app) and on the Barnes & Noble NOOK

Here are some of the topics covered in the April 2012 issue:

*Playing the tech IPO cycle
*5 promising new small caps
*Demandware powers e-commerce
*Yelp delivers the reviews
*Bazaarvoice analyzes the feedback
*ExactTarget hits the social media mark
*A former high-flyer comes back to earth
*Mobile-ad play Millennial Media
*ValueClick’s Greystripe purchase paying off
*Cloud buzz drives NetSuite shares
*Valuation update: & Concur
*Intel looks for growth in the Post-PC era
*EMC gets a boost from the cloud
*Tibco Software’s 5 key growth segments
*Behind the surge in Rackspace Hosting shares
*Cornerstone OnDemand emerges in talent management
*TSP Deal Report: Symantec buys Nukona & Odyssey

To place an order, call TSP Customer Support at 800-392-0998 or visit

Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or your
Kindle for iPad/iPhone reading app.

Here’s the Kindle link:


Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street., launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.

For more information or to place an order, call 800-392-0998.

Description: Traders rush into Splunk