Big Debut for Workday (WDAY) IPO, Surges 73%

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					Robert DeFrancesco’s
October 12, 2012

Big Debut for Workday (WDAY) IPO, Surges 73%
NOW AVAILABLE: The October 2012 issue of Tech-Stock Prospector for your
Amazon Kindle or Kindle for iPad/iPhone reading app.

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

*Apple stumbles after the iPhone 5 launch
*Google shares hit a new all-time high
*Short sellers circle Splunk
*Adobe Systems embraces the cloud
*The new darling of networking security: Palo Alto Networks
*Demandware benefiting from growth in e-commerce
*NetSuite expands via its SuiteCommerce platform
*Cisco Systems gets some Wall Street support
*F5 Networks jockeys for more share of the ADC market
*Cornerstone OnDemand fends off the big HCM competitors
*Tibco Software boasts a record deal pipeline
*Oracle steps up its cloud battle against
*New cloud play: Eloqua automates lead management
*Are ValueClick shares undervalued?
*A fresh valuation analysis on Yahoo
*Deal Report: Cloud security IPO Qualys

Order the October 2012 issue here:


Workday (WDAY, $48.69) last night priced its IPO at $28 a share (above the
expected range of $24 to $26) and this morning the stock opened for trading at
$48.05, representing an opening gain of 71% for the provider of cloud-based
enterprise resource management solutions.

The stock traded to an opening-day high of $51.37 and closed with a gain of 73%. I
knew the deal would be well received (we covered it in the September 2012 issue of
Tech-Stock Prospector), but I did not expect it to be this strong out of the gate.

Workday competes in the $7.5-billion human capital management (HCM) market.
According to IDC, the company controls just 3.5% of this market, but is winning
share because it is growing so much faster than the overall segment’s growth rate of

Fiscal 2012 (ended Jan.) revenue rose 98% to $134.4 million. For the six months
ended July, revenue was up 118% to $119.5 million.

Workday is also trying to make its mark in the $15.7-billion back-office financials
segment, where it faces tough competition from cloud ERP software vendor
NetSuite (N, $60.80).

With 160.29 million shares outstanding, Workday sports a market cap of $7.8
billion, which is a whopping 39x trailing 12-month revenue of $199 million.

I can think of a few cloud-based software companies with solid growth rates and
more attractive valuations.


Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or 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: The old PeopleSoft management team is back to hound Oracle via Workday