Red Hat (aviate Buy): positive reads from IBM and SAP
The devil is in the detail. Red Hat, like many growth software stocks, has been weak lately as investors seem to have rotated into the cheaper end of the sector (ORCL, BMC, SYMC, CA). However, reading...
View ArticleThis explains software
The good old proverbial hockey stick. Software sales men and women are just like your friendly stockbrokers. Going the extra mile to ramp business, close deals, earn the bonuses, win the promotion, in...
View ArticleSAP: low expectations provide opportunity
The theme continues from yesterday. Namely, software stocks are moving higher on inline guidance. First Adobe, and now Red Hat are suggesting strong momentum from enterprise spending and cloud....
View ArticleRed Hat: now is the time to get onboard
Thsi chart spells out the key essence of Red Hat. The EPS downgrade revision cycle is the reason Red Hat has underperformed the S&P by -42% over the last year. Red Hat is cheap relative to history....
View ArticleReading various tea-leaves: positive for Cisco
First, Red Hat explicitly called out an improving outlook in Federal spending. This supports our note last week when we suggested our channel checks indicated the public sector (which has remained...
View ArticleOut of vogue: This explains software & the opportunity
Q1 is traditionally a weak quarter for software, a hangover from the annual seasonality of Q4 budget flush, and the good old proverbial hockey stick sales cycle (see chart below). Software sales men...
View ArticleRed Hat; disappointing. Deceleration in leading indicator
As highlighted back in June, Red Hat’s valuation had become cheap relative to history and an EPS downgrade cycle had appeared to come to an end allowing upgrades and the potential for growth...
View ArticleIT Software/Services (part 1): the woes continue
Following Dassault Systemes warning yesterday (call for our European team’s thoughts), recent poor numbers out of Citrix and Red Hat, and soft guidance from Oracle late last month we can now add...
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