50% Gains Investing Message Board

Sponsor

From: Biomaven	8/1/2012 11:57:27 AM
	of 114442

I was dredging through some broken IPO's and one caught my eye - Envivio (ENVI) - now trading at around $6, down from an IPO price of $9 earlier this year. They provide services that enable streaming of cable TV offerings to portable devices, and seem to be growing pretty fast (> 30% range). Should be around cash breakeven next quarter and market cap of under $150m is around 2X cash. So enterprise value is currently around 1X revenue with decent margins. On the downside, doesn't look like lockup is over yet. From a technical perspective, their advantage seems to be that they cope with a variety of end-user devices, so can optimize for each type (iPad vs iPad3 vs iPhone). They are a pure software solution, and as best I can tell compete with more hardware-oriented solutions. Seems to be an annuity-type business - once they have a provider locked-in, the more end users the more revenue they get. Envivio powers services for more than 300 content and service provider customers around the world, including eight of the top 10 mobile operators, seven of the top 10 broadband providers and three of the top four US cable operators. Here's their home page: envivio.com Any ideas how I can do some more due diligence here? Any suggested threads on SI where I can ask about this niche? Peter