Two separate investment thoughts: first Datawatch (DWCH, Financial) and second why Qlik Technologies (QLIK, Financial) and Datawatch together could create an insurmountable business intelligence moat for new knowledge discovery.
Datawatch continues to close on growing opportunities. "I see a big opportunity in front of us:" These are management's words from the July 26 third quarter conference call further supported by a 96% year-over-year increase in license revenue along with an impressive 300% non-GAAP EPS gain. Quarter two reported a 67% increase in license revenue and 99% for quarter one. So things keep improving sequentially and year over year. These impressive results are all based on organic growth.
On Aug. 1, 2012, Datawatch announced another prestigious and strategic alliance with ACL Services Ltd. ACL is the leader in audits and corporate risk management. ACL solutions are used in 14,700 organizations in over 150 countries. Their customers include 98 percent of Fortune 100 companies, 89 percent of the Fortune 500 and over two-thirds of the Global 500. ACL software is also used in hundreds of national, state and local governments, and the Big Four public accounting firms. ACL and Datawatch will support this new alliance with joint marketing, sales, services and certification. I'm strongly optimistic that many more of these strategic alliances will soon be realized.
My Datawatch conviction is strong. It's based on progress realized over the last several quarters. Value has been quickly realized but still has yet to be fully reflected on the reported results. I see the market's current valuation mistake on Datawatch as an opportunity to continue holding my position and add more on price weakness. Datawatch continues to be fortunate to acquire many new talented team members over the past few quarters. The full financial benefit of these intangible asset will soon be realized. Half the current sales staff of 15 have been with the company less than six to nine months. Six to nine months is needed to get up to speed. So expect increased sales and earnings production in the coming quarters.
Further product demand was evident with international expansion in Singapore announced the second week of July. The company also purchased significantly undervalued intellectual property during quarter two, providing the company more flexibility to continue adding shareholder value from additional industry product integration. Additionally the company announced multiple partnerships/technology alliances in the current third quarter and prior periods, industry recognition, and a quickly evolving experienced team to leverage these internal and favorable market trends.
My second investment thought is with Qlik Technologies (QLIK) and Datawatch (DWCH) as being able to create an unstoppable BI (business intelligence) moat.
A number of months ago I found myself exploring Qlikview software. Qlikview is a BI (Business Intelligence) software selected by the Gartner's 2012 Magic Quadrant. I've been using BI tools for over 15 years from Hyperion, Cognos, Microstrategy, Tableau, Di-Diver, and other tools. At first I told myself how could Qlikview be so different or materially better from the other data analysis applications I've used. I was wrong it is a must have when looking for an real edge to discover new knowledge.
But more importantly I strongly believe Qlikview is only running at 5 to 10% capacity without Datawatch's report analytic software. Qlikview has amazing functionality and power but without clean transformed improved data access to the virtually unlimited sources it's not nearly as exciting and useful. Datawatch will give Qlikview immediate access to multiple sources of locked data found on websites, PDF, mainframe or PC application, and countless other sources of unstructured and structured data. This will make the combination (Datawatch/Qlikview) an insurmountable moat to data discovery. It's only when all these known and often unknown overlooked transformed data sources are brought into the Qlikview world can these new beneficial discoveries be realized.
Qlikview is a much larger company at 1.8 billion versus just under 100 million for Datawatch. So how would a stronger integration, or complete acquisition of Datawatch help the much larger Qlikview? Datawatch will give Qlikview immediate access to an evangelical user base in more than 40,000 companies/customers in 100 countries and 495 of the Fortune 500.
Datawatch recently listed Qlikview as a technology alliance buried on their website. The relationship should be and I would expect it to be more fully developed, integrated, improved and advertised as an unmatched moat to data discovery. But that is just my speculation as a biased shareholder, customer and now almost daily user of both companies' software in conjunction.
So what does all this mean for investors? Two stocks that should see much higher prices. One speculative view is the higher prices will be helped with the market's realization of overlooked synergies that will create an insurmountable moat based on a stronger integrated product. Will that relationship mean Qlikview ultimately makes an offer for tiny Datawatch? I can't know. Given the much smaller size of Datawatch, the change in stock price given any scenario of improved integration or a complete acquisition will have the greater price change.
For more value based ideas cllick to visit
http://shadowstock.blogspot.com/
Thank you
Datawatch continues to close on growing opportunities. "I see a big opportunity in front of us:" These are management's words from the July 26 third quarter conference call further supported by a 96% year-over-year increase in license revenue along with an impressive 300% non-GAAP EPS gain. Quarter two reported a 67% increase in license revenue and 99% for quarter one. So things keep improving sequentially and year over year. These impressive results are all based on organic growth.
On Aug. 1, 2012, Datawatch announced another prestigious and strategic alliance with ACL Services Ltd. ACL is the leader in audits and corporate risk management. ACL solutions are used in 14,700 organizations in over 150 countries. Their customers include 98 percent of Fortune 100 companies, 89 percent of the Fortune 500 and over two-thirds of the Global 500. ACL software is also used in hundreds of national, state and local governments, and the Big Four public accounting firms. ACL and Datawatch will support this new alliance with joint marketing, sales, services and certification. I'm strongly optimistic that many more of these strategic alliances will soon be realized.
My Datawatch conviction is strong. It's based on progress realized over the last several quarters. Value has been quickly realized but still has yet to be fully reflected on the reported results. I see the market's current valuation mistake on Datawatch as an opportunity to continue holding my position and add more on price weakness. Datawatch continues to be fortunate to acquire many new talented team members over the past few quarters. The full financial benefit of these intangible asset will soon be realized. Half the current sales staff of 15 have been with the company less than six to nine months. Six to nine months is needed to get up to speed. So expect increased sales and earnings production in the coming quarters.
Further product demand was evident with international expansion in Singapore announced the second week of July. The company also purchased significantly undervalued intellectual property during quarter two, providing the company more flexibility to continue adding shareholder value from additional industry product integration. Additionally the company announced multiple partnerships/technology alliances in the current third quarter and prior periods, industry recognition, and a quickly evolving experienced team to leverage these internal and favorable market trends.
My second investment thought is with Qlik Technologies (QLIK) and Datawatch (DWCH) as being able to create an unstoppable BI (business intelligence) moat.
A number of months ago I found myself exploring Qlikview software. Qlikview is a BI (Business Intelligence) software selected by the Gartner's 2012 Magic Quadrant. I've been using BI tools for over 15 years from Hyperion, Cognos, Microstrategy, Tableau, Di-Diver, and other tools. At first I told myself how could Qlikview be so different or materially better from the other data analysis applications I've used. I was wrong it is a must have when looking for an real edge to discover new knowledge.
But more importantly I strongly believe Qlikview is only running at 5 to 10% capacity without Datawatch's report analytic software. Qlikview has amazing functionality and power but without clean transformed improved data access to the virtually unlimited sources it's not nearly as exciting and useful. Datawatch will give Qlikview immediate access to multiple sources of locked data found on websites, PDF, mainframe or PC application, and countless other sources of unstructured and structured data. This will make the combination (Datawatch/Qlikview) an insurmountable moat to data discovery. It's only when all these known and often unknown overlooked transformed data sources are brought into the Qlikview world can these new beneficial discoveries be realized.
Qlikview is a much larger company at 1.8 billion versus just under 100 million for Datawatch. So how would a stronger integration, or complete acquisition of Datawatch help the much larger Qlikview? Datawatch will give Qlikview immediate access to an evangelical user base in more than 40,000 companies/customers in 100 countries and 495 of the Fortune 500.
Datawatch recently listed Qlikview as a technology alliance buried on their website. The relationship should be and I would expect it to be more fully developed, integrated, improved and advertised as an unmatched moat to data discovery. But that is just my speculation as a biased shareholder, customer and now almost daily user of both companies' software in conjunction.
So what does all this mean for investors? Two stocks that should see much higher prices. One speculative view is the higher prices will be helped with the market's realization of overlooked synergies that will create an insurmountable moat based on a stronger integrated product. Will that relationship mean Qlikview ultimately makes an offer for tiny Datawatch? I can't know. Given the much smaller size of Datawatch, the change in stock price given any scenario of improved integration or a complete acquisition will have the greater price change.
For more value based ideas cllick to visit
http://shadowstock.blogspot.com/
Thank you
