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Second Quarter Technology Trading - Active Software, Internet

August 05, 2013 | About:
Sally Jones

Sally Jones

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The second quarter of 2013 brought some exciting trading activity in the world of IT solutions, cloud marketing, and software infrastructure companies, especially with those focused on the ever-increasing potential of the Internet. The Salesforce.com acquisition of ExactTarget Inc. spurred gains for billionaire stakeholders as well. Here are updates on four companies and their Guru stakeholders:

ExactTarget Inc. (ET)

As of July 11, 2013, Salesforce.com, the world’s leading CRM platform completed its acquisition of ExactTarget Inc. (ET) for $2.5 billion. ExactTarget is a leading cloud marketing platform used by more than 6,000 companies including Coca-Cola, Gap and Nike. “The combination of ExactTarget and Salesforce.com will increase the value proposition for customers of both companies,” Saleforce.com reported in a company press release.

Up 54% over 12 months, ExactTarget Inc. (ET) is a global provider of cross-channel, interactive marketing “software as a service” or SaaS solutions that make it possible for organizations to communicate with their customers through whatever interactive channels they use, including email, mobile, social media and websites.

ExactTarget Inc. has a market cap of $2.35 billion and trades with a P/B of 8.38 and a P/S of 7.17. The current share price is $33.75. The earnings yield (Greenblatt) is 6.00.

Most recently, Salesforce.com purchased 73,626,481 ET shares at a price of $33.75 per share, as of July 11, 2013. As of June 30, 2013, Mario Gabelli made a new buy of 1,043,868 shares at an average price of $25.02 per share for a gain of 35%. Guru Steven Cohen made a new buy of 74,179 shares at an average price of $22.55 as of the first quarter of 2013, showing a 50% gain.

Check out the five Gurus currently holding ET shares.

Historical pricing:



CA Inc. (CA)

Incorporated in 1974 as CA Inc. (CA), the company has a market cap of $13.81 billion and trades with a P/E of 14.30 and a P/B of 2.50. The current share price is $30.58.

CA Technologies provides IT management solutions that help customers manage and secure complex IT environments to support agile business services. The company addresses most of the components of the computing environment, including people, information, processes, systems, networks, applications and databases, regardless of the hardware or software customers are using.

In late July the company reported financial results for its first quarter fiscal year 2014, ended June 30, 2013, showing a 1% decrease in revenue, 47% growth in GAAP EPS, 25% growth in non-GAAP EPS, and an 83% decrease in cash flow. According to a company press release, the company reaffirms its fiscal year 2014 outlook. On August 1, the company announced a regular, quarterly cash dividend of $0.25 per share of common stock.

Brian Rogers is the top Guru shareholder, first buying 2,500,000 CA shares at an average price of $23.06 in the fourth quarter of 2012, for a gain of 32.6%. In the second quarter of 2013, he gained 14.1% on this holding.



See the second quarter 2013 activity of other Gurus holding CA .

Historical pricing:



Fortinet Inc. (FTNT)

Incorporated in 2000, Fortinet Inc. (FTNT) is a leader in high-performance network security. The company has a market cap of $3.43 billion and trades with a P/E of 55.80 and a P/B of 6.20. Its earnings yield (Greenblatt) is 3.10. The current share price is $21.16.

Fortinet Inc. provides network security solutions designed to address the fundamental problems of an increasingly bandwidth-intensive network environment and a more sophisticated information technology threat landscape. The company provides broad, integrated and high performance protection against dynamic security threats while simplifying the IT security infrastructure for enterprises, service providers and governmental entities worldwide.

Fortinet Inc. reported its second quarter 2013 financial results as: revenues of $147.4 million, up 14% year over year; billings of $160.7 million, up 10% year over year. The GAAP diluted net income per share is $0.05, and the non-GAAP diluted net income per share is $0.10. Cash flow from operations is $37.2 million, with free cash flow of $35.2 million. The company reported cash, cash equivalents and investments of $814.4 million, with no debt.

Manning & Napier Advisors Inc. made a new buy in the second quarter of 2013 for 3,423,140 shares at an average price of $18.64 per share, gaining 13.5%. The company had sold out 410,070 shares at an average price of $20.42 at the end of the first quarter in 2013, making a 3.6% gain.

Check out a number of other Gurus holding FTNT shares.

Historical pricing:



F5 Networks Inc. (FFIV)

As a global leader in application delivery networking, F5 Networks (FFIV) helps organizations meet their data center demands that come with a changing environment of technology in voice, data, and video traffic, as well as increasing mobile workers and new applications.

Incorporated in 1996, F5 Networks provides products and services to manage Internet Protocol (IP) traffic and file storage infrastructure efficiently and securely. Its application delivery networking products improve the performance, availability and security of applications on Internet-based networks.

F5 Networks Inc. has a market cap of $7.03 billion; its shares were traded at around $88.58 with a P/E ratio of 25.60 and P/S ratio of 4.90. F5 Networks Inc. had an annual average earnings growth of 28.8% over the past 5 years.

In July, F5 Networks Inc. reported revenue of $370.3 million for the third quarter of fiscal 2013, up 6% from $350.2 million in the prior quarter and 5% from $352.6 million in the third quarter of fiscal 2012. GAAP net income for the third quarter was $68.2 million ($0.86 per diluted share) compared to $63.4 million ($0.80 per diluted share) in the second quarter of 2013 and $72.3 million ($0.91 per diluted share) in the third quarter a year ago.

As of quarter ending June 30, 2013, Manning & Napier Advisors Inc. bought 883,910 shares at an average share price of $76. 95 per share, for a gain of 15%.

Historical price:



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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

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