10 Cloud Software Stocks to Watch

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					Robert DeFrancesco’s
July 20, 2012

10 Cloud Software Stocks to Watch
Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or Kindle for
iPad/iPhone reading app.

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

Most cloud-software stocks are performing well so far in 2012, with LivePerson
shares up nearly 47% YTD. Shares of the four Cloud Software Kings (CRM, CNQR, N
& ULTI) are up an average of 30.7%.

The group isn’t cheap, trading at an average forward price-to-sales (P/S) ratio of
nearly 7x. NetSuite, Jive and Cornerstone have the highest P/S valuations.

Credit Suisse today said it sees Jive, Concur and Ultimate as the most likely
takeover targets in this segment.

Cloud Software 10 (ranked by market cap)
Company                        Recent          Market      Forward         Forward
                               price           Cap         Revenue Est.    Price-to-
                                               ($bil)      ($mil)          Sales Ratio
Salesforce.com (CRM)               $135.16     $18.65      $3,000          6.1
Concur Tech (CNQR)                 64.94       3.56        441             8.0
NetSuite (N)                       50.48       3.54        300             11.8
Ultimate Software (ULTI)           89.33       2.38        332             7.1
ExactTarget (ET)                   21.15       1.39        272             5.1
Jive Software (JIVE)               19.69       1.22        113             10.8
Cornerstone OnDemand (CSOD)        24.61       1.22        115             10.6
LivePerson (LPSN)                  18.44       1.01        162             6.2
Kenexa (KNXA)                      24.09       0.658       361             1.8
Constant Contact (CTCT)            18.62       0.566       253             2.2
Avg. forward P/S ratio                                                     6.97

Ranked by YTD stock performance
1-LivePerson +46.9%
2-Ultimate +37.2%
3-Cornerstone +34.9%
4-Salesforce +33.2%
5-Concur +27.8%
6-NetSuite +24.5%
7-Jive +23.1%
8-Kenexa -9.8%
9-Constant Contact -19.8%
*ExactTarget (March 2012 IPO @ $19, opened at $23.50)

Ranked by RSI (July 20)
3-Constant Contact—52.8

We cover the cloud-software sector in every issue of Tech-Stock Prospector.


The July 2012 issue of Tech-Stock Prospector is available at
TechStockProspector.com (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 July 2012 issue:

*Strategy Overview: Tech investors remain cautious
*Big Data Update: Informatica stumbles
*Big growth expected for enterprise social software
*Jive Software rallies on Yammer buyout
*Rackspace Hosting takes a dip
*ServiceNow IPO makes a splash
*A wild ride for Millennial Media
*Juniper Networks gets even cheaper
*Google is positioned for new battles
*Strong earnings from Tibco Software
*Yelp & Apple cozy up
*Why big investors like Skyworks
*Procera doubles its addressable market
*Datacenter Update: F5 Networks
*A cloud-software stock hitting new highs
*TSP Deal Report: Seagate Technology

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 Kindle for
iPad/iPhone reading app.

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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.

TechStockProspector.com, 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: Cloud software stocks are having a good year