4-Star Stocks Poised to Pop: MicroStrategy

By Brian D. Pacampara (link to article)

Based on the aggregated intelligence of 150,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, business intelligence software specialist MicroStrategy (Nasdaq: MSTR) has earned a respected four-star ranking.

With that in mind, let’s take a closer look at MicroStrategy‘s business and see what CAPS investors are saying about the stock right now.

MicroStrategy facts

Headquarters (Founded) McLean, Va. (1989)
Market Cap $1.0 billion
Industry Application software
Trailing-12-Month Revenue $377.8 million
Management CEO Michael Saylor (since 1989)
CFO Douglas Thede (since 2009)
Return on Equity (Average, Past 3 Years) 39.7%
Cash/Debt $224.8 million / $0
Competitors Microsoft (Nasdaq: MSFT)
Oracle (Nasdaq: ORCL)
Customers Hewlett-Packard (NYSE: HPQ)
Yahoo! (Nasdaq: YHOO)
Wells Fargo (NYSE: WFC)



Sources: Capital IQ (a division of Standard & Poor’s) and Motley Fool CAPS.

On CAPS, 89% of the 206 members who have rated MicroStrategy believe the stock will outperform the S&P 500 going forward. These bulls include Southoftheborder and All-Star TSIF, who is ranked in the top 2% of our community.

Just three days ago, Southoftheborder highlighted the stock’s recent plunge as an opportunity to pounce: “Beats competition hands down, profitable and recent twenty percent drop is a buy indicator. Also possible buyout candidate.”

In a pitch from last week, TSIF elaborates:

I was “gifted” with a 20% pullback in a single day on Feb.3rd. after the earnings release. … While I sometimes “play” what I feel are excessive sell-offs with short term upcalls, in the case of MicroStrategy, I’m happy to go long at this retraced level.

YOY quarterly results up 11%.
Business Intelligence Software rising in demand.
Business spending on the increase.
Net income up 44% yoy.
New Product Launch.
Cash on hand DOUBLE yoy.
20% margins. Strong Cash Flow. NO DEBT


About Andy Painter

A passionate Information and Data Architect with experience of the financial services industry, Andy’s background spans pharmaceuticals, publishing, e-commerce, retail banking and insurance, but always with a focus on data. One of Andy’s principle philosophies is that data is a key business asset.
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