Hey there, so I'm obviously new to the market, but have been having an incredible time on this site learning, and especially cruising these message boards and blogs, trying to glean what information I could on any topic, industry, strategy, lingo, etc. It's been a terrific experience in just a few short months.
I work in the IT industry as a technical recruiter, and have the distinct advantage of speaking with everyday joes like you and I, who happen to know a whole lot about Technology, but most importantly, have strong opinions on the industries they work in, the companies they work for, and the tools they use. My first trade here was a purchase of PegaSystems (PEGA). In my mind, and the mind of many others, Pega is THE BEST Business Process Management (BPM) tool in the market today. To dumb it down briefly, Pega puts the power in the hands of non-techies in an organization, and can deploy full-scale applications a lot faster. And as a recruiter, I see the growing demand for these resources (ppl who know Pega) every single day.
Because I believed in the product , and I believe in a lot of the horses in the market that Pega has hitched their saddle to, I think the company is in a great position to continue to grow and improve as a company. I've even visited with users in every industry who fully believe that Pega (because of its SmartBPM Suite) will change the world of IT. They are definitely drinking the Kool-aid. But Pega has seen some good growth recently. Total revenue for the first quarter was $48.5 Million, an increase of 29% compared to first quarter 2007.
My issue is, I see some questionable fundamentals, and truthfully, as a beginner, can't read/understand much of the fundamentals that are plagueing this company. I read that its a SELL most everywhere I turn, including MarketGrader here on TK. Also, Pega's P/E is 54!
So I turn to you, good folks of TK. Can anyone with a sound understanding of the fundamental analysis of this company explain why I should be worried? I should also note, I don't have a big position here, but that doesn't mean I don't wanna make money! ;)
Any insight is greatly appreciated, and thanks for taking the time to read this!
Casey
