Sunday, February 13, 2011
When I introduced the new TradingStockAlerts Free Stock Screener, I mentioned that I'd soon be away from the office and that data on the new screener and on Trade-Radar would be going stale while I was out of the office. As it turns out, I have been able to update the data on both sites on the usual schedule thanks to a neat piece of software from a company called LogMeIn.
LogMeIn provides solutions that allow you to remotely manage computers. In my case, I have a laptop in Hawaii and I am able to control the computer in the office that runs all the Trade-Radar analysis programs. I install a piece of software on the office computer which runs as a service. It waits for a request to access the computer and handles security (a password is required and encryption is used) and the managing of the keystrokes and screen views. On my laptop, I use a Firefox plugin that handles the other end of the security and displays the screen on the office computer. It was super simple to sign up, get the software installed and then to use it as needed.
LogMeIn utilizes the "freemium" business model. They have a free account that allows you to manage one computer. During the trial period, full functionality is available. This includes file transfers, desktop sharing, using the printer, listening to MP3s, collaboration, computer monitoring, maintenance and alerts. In the Pro version, you can access thousands of remote computers. After the trial period ends, only basic single computer access is allowed. The expectation is that users will eventually want to upgrade to the paid premium plans. This upgrade path is where the company's revenue growth will be derived.
The financials --
Whew, this company is expensive! Some common valuation measures are sky high: PE over 55, PEG is 2.36, price-to-sales is over 10, enterprise value to EBITDA is over 45.
On the other hand, the company might very well be plugged into a niche that is ready for strong growth and, as has often been said, growth is often not cheap.
The niche --
The idea of controlling computers remotely is not new. It is something that network and PC administrators in large enterprises have been doing for ages. What is interesting about this niche now is that the surge in personal, portable computing platforms could really increase the demand for this kind of service.
With smart phones and tablets becoming pervasive, people are more connected than ever but, so far, these devices can't do the heavy lifting that a real PC or a server can do. Editing big Word docs or presentations, for example, are things that thus far aren't really viable on most of these kinds of devices. Similarly, modifying a piece of software requires a full development environment, something that would be extremely difficult to implement on an iPhone or iPad.
LogMeIn offers simple remote PC and server administration for professional enterprise system admins as well as similar capabilities for individuals. Want to edit a PowerPoint presentation from your iPhone? LogMeIn can help with that. Want to run a batch program from your iPad and then check the results before sending output files somewhere? LogMeIn can help with that, too. The fact that the company is targeting individuals and their personal computing needs is what sets the company apart from the companies that are more focused on the enterprise market. The growing need of the personal segment to be able to access more powerful computing platforms from a phone or tablet plays to the company's strength.
It will be interesting to see whether the niche expands as strongly as my analysis suggests it might. If I'm right, LogMeIn and its competitors have a bright future.
Disclosure: no positions
Sunday, February 6, 2011
Well, I've just been overwhelmed with behind the scenes activities and I haven't had the time for blogging.
First, I realized that the Trade-Radar Stock Inspector software was not internationalized properly and our European friends encountered a fatal error each time they tried to display a chart. I've made the changes necessary to accommodate the European way of displaying currency but there is still further testing to be done before I can release the new version of the software.
While I was in the middle of testing the Trade-Radar changes I was contacted by someone who wanted to sell me the Internet domain TradingStockAlerts.com. After thinking about it for a bit, I decided to buy it and, of course, I couldn't resist diving in and creating a new web site.
After messing around with the homepage I created what think is a pretty darn good stock screener. You can check it out at http://tradingstockalerts.com/freestockscreener
It includes all kinds of fundamental data as well as a good dose of technical analysis including moving averages, DMI, MACD and Aroon. Note that the various alerts, reversal signals, Trend Busters, gaps and swing signals are always limited to those that have occurred within the last few weeks. This ensures you aren't wasting your time on signals that are really outdated. It could use a few refinements but for the most part it's complete.
If you poke around the new site, however, you'll see that lots of the pages are actually at the current Trade-Radar.com site. That will change eventually. Here's what I am planning to do.
The Trade-Radar.com web site will be modified to focus on the Trade-Radar Stock Inspector software while the TradingStockAlerts.com web site will be set up to handle all the Alert HQ and Alert HQ Premium signals. It will further be set up to be more interactive and provide more detail (like the new stock screener). Plus, I'll eventually be offering email alerts. A user can submit a watch list and the site will check for changes in each stock's situation including changes in financials as well as in technicals.
Now that I've explained what I've been up to lately and I've encouraged you to play with the new stock screener, I regret that I have to tell you that I'm going on vacation starting Wednesday and I'll be gone for a week and a half. That means no one will be in the office tending the Trade-Radar or TradingStockAlerts sites. That furthermore means the data on both sites will be a bit stale before I get back.
In any case, please do give the new stock screener a try and let me know what you think. Leave a comment here are send me an email.
See you when I get back!!
Note: hat tip to http://www.toothpastefordinner.com for the great illustration above
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