Disclosure: No positions
The article was first published here: http://seekingalpha.com/instablog/527966-sgrover/41262-ctct-buy-on-current-weakness
Monday, December 28, 2009
CTCT: Buy on current weakness
Constant Contact (CTCT), a leading on-demand email marketing company has declined almost 32% from its July 30th high of $22.70. The stock is currently trading at 2.8x EV/Rev, a big discount to its peer SaaS companies avg of 5.2x (Please see the comps analysis below).
Nothing major has happened since July 30th for CTCT – The Company has beaten estimates, has issued a decent guidance for the current quarter and has been growing much faster than other SaaS companies. The only significant event that has happened is the CFO transition that CTCT announced on Dec 1st. Looking at the above chart and comparables below, it seems like the stock is mainly being driven down by technicals and is perhaps a solid buy on this weakness.
An impressive growth rate, a retention rate of more than 97% on a customer base of more than 300,000 and a cheap valuation suggests a strong buy.
Disclosure: No positions
The article was first published here: http://seekingalpha.com/instablog/527966-sgrover/41262-ctct-buy-on-current-weakness
Disclosure: No positions
The article was first published here: http://seekingalpha.com/instablog/527966-sgrover/41262-ctct-buy-on-current-weakness
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1 comment:
How did you build this comparables chart? Did you have access to any paid subscription thing or you used some public data?
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