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Click Commerce: Powerful Software, Low P/E, Ready to Shoot Up
posted Thursday, 4 May 2006
Click Commerce (CKCM) is one of the most promising software stocks. They have solid earnings, consistent growth, a powerful future with RFID, a growing customer base for their enterprise software, but a surprisingly low P/E of 14. They are at $22.5 a share right now, when they were at $30 a few weeks ago. It's the stock that is lagging, not the company, and this is a great time to buy.
If you want to invest, I suggest taking about 60% of whatever chunk you have for CKCM and buying it now below $24. Then save the other 40% for a judgment call when earnings come out next week on May 9. I expect blow-out earnings and sharp rise during the day. Buy more early in the day in that case. But there is a chance that in spite of great earnings, a jittery market will panic at a headline or a statement in the report and that the stock will drop 5-10%. Look carefully then at the story and at some of the comments on the Yahoo! message board for CKCM to find out what's happening. If there is an indication of lowered future potential, don't buy - but much more likely an after-earnings drop with a great company like CKCM might be an overreaction or a panic, giving you a sweet buying opportunity for more.
But my prediction is this: a great report on May 9 will send this stock strongly upward, with several days of growth back to the level of $30 by Friday morning, and continued growth to $50 or $60 later this year. But no one can know these things, so be careful. Treat Click Commerce as an investment in a winning company, be patient, don't sell too quickly, and watch it grow.
Another one I like is Neoware (NWRE) with a powerful position for thin clients. Good time to buy now, after the stock got beat up last week and is moving back strongly.
If you want to invest, I suggest taking about 60% of whatever chunk you have for CKCM and buying it now below $24. Then save the other 40% for a judgment call when earnings come out next week on May 9. I expect blow-out earnings and sharp rise during the day. Buy more early in the day in that case. But there is a chance that in spite of great earnings, a jittery market will panic at a headline or a statement in the report and that the stock will drop 5-10%. Look carefully then at the story and at some of the comments on the Yahoo! message board for CKCM to find out what's happening. If there is an indication of lowered future potential, don't buy - but much more likely an after-earnings drop with a great company like CKCM might be an overreaction or a panic, giving you a sweet buying opportunity for more.
But my prediction is this: a great report on May 9 will send this stock strongly upward, with several days of growth back to the level of $30 by Friday morning, and continued growth to $50 or $60 later this year. But no one can know these things, so be careful. Treat Click Commerce as an investment in a winning company, be patient, don't sell too quickly, and watch it grow.
Another one I like is Neoware (NWRE) with a powerful position for thin clients. Good time to buy now, after the stock got beat up last week and is moving back strongly.
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