Sniper Fund
Long/short equity

A Short With Benefits: Benefitfocus

A short with Benefits: Benefitfocus

Here is one that slipped through the IPO cracks, Benefitfocus (NASDAQ:BNFT). Everyone is aware of the benefits of Cloud computing and how moving data to the cloud is disrupting traditional on premise software vendors. What may not be so clear is the effect of the fed's induced liquidity driven bull market on valuations of Cloud computing companies. The bull market wave is lifting all ships, even the ones which deserve to sink. BNFT should not be trading where it is today and I will cover off why.

Let's start at the Top and work down.

The US Fed has kept the stockmarket party going. As illustrated below the Fed's asset purchase program has ...

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