2-Star Stocks Poised to Plunge: NetSuite?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cloud enterprise software provider NetSuite (NYS: N) has received a distressing two-star ranking.
With that in mind, let's take a closer look at NetSuite's business and see what CAPS investors are saying about the stock right now.
NetSuite facts
Headquarters (founded) | San Mateo, Calif. (1998) |
Market Cap | $4.0 billion |
Industry | Systems software |
Trailing-12-Month Revenue | $269.1 million |
Management | Co-Founder/Chairman/Chief Technology Officer Evan Goldberg |
Return on Equity (average, past 3 years) | (27.1%) |
Cash/Debt | $164.5 million / $2.8 million |
Competitors | Sage Software |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 28% of the 310 members who have rated NetSuite believe the stock will underperform the S&P 500 going forward.
Just last week, one of those bears, OklaBoston, highlighted some recent insider activity as a very clear reason to stay away: "Very recent open market selling by multiple directors practically screams 'top' to me. And confirms more fundamental indicators that this is overpriced."
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another tech play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.
The article 2-Star Stocks Poised to Plunge: NetSuite? originally appeared on Fool.com.
Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Motley Fool owns shares of salesforce.com.Motley Fool newsletter serviceshave recommended buying shares of salesforce.com and NetSuite.Motley Fool newsletter serviceshave recommended shorting salesforce.com. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
