“They’re all good companies, but they are trading at 8.5 times 2011 revenues and at over 100 on a P/E basis,” he explained.
Instead, Davis favors the following firms:
Pegasystems—“Think of them as the UN translator for software,” he explained. “They link together applications that don’t talk to each other—so that saves companies money.”
Constant Contact—“They sell themselves to the small business community,” he said of the firm. “They help you do marketing, email or social media connections and the small and mid-size businesses are seeing a pick up.”
Autodesk
Intuit—“They’re trying to make a big move into India.”
______________________________
More Market Opinion—Read and Decide:
______________________________
CNBC Data Pages:
______________________________
CNBC Slideshows:
______________________________
______________________________
Disclosures:
Davis does not own shares of SFSF, OPEN, CTCT, PEGA, ASDK or INTU.
Canaccord Genuity or any of its affiliated companies is a market maker or liquidity provider in the securities of SFSF, OPEN, CTCT, PEGA, ADSK and INTU.
Canaccord Genuity intends to seek or expects to receive compensation for corporate finance/investment banking services from SFSF, OPEN, CTCT, PEGA, ADSK and INTU.
PEGA currently is, or in the past 12 months, was a client of Canaccord Genuity or its affiliates and was provided with non-investment banking securities-related services.
In the past 12 months, Canaccord Genuity or affiliates have received compensation for corporate finance/investment banking services from PEGA.
______________________________
Disclaimer