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In light of the recent acquisition of SuccessFactors (SFSF) by SAP AG (SAP) at a 52% premium both over the December 2nd closing price and the one month volume weighted average price per share, and considering the global market for cloud services last year was about $68B, I have decided to compile a short list of cloud-computing related companies which may be worth considering for your 2012 portfolio. It includes brief business descriptions, current stock price, forward P/E, highest analyst one year targets, 52 week charts, valuation measures and income statements.

1. VMware, Inc. (VMW)

VMware hosts a portfolio of virtualization solutions which address a variety of complex IT problems, including cost and operational inefficiencies, facilitating access to cloud computing capacity, business continuity, software lifecycle management, and corporate computing device management. Its virtualization technology is organized into four primary categories: Cloud Infrastructure, Cloud Application Platform, End-User Computing, and Virtualization and Cloud Management.

The stock currently trades around $96 and has a forward P/E of 38.64. The highest analyst one year price target for VMW is $125.

VMW 52 Week Chart

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VMW 52 Week Chart

Key Data:

Valuation Measures

Market Cap (intraday):

40.44B

Enterprise Value (Dec 7, 2011):

37.42B

Trailing P/E (ttm, intraday):

65.09

Forward P/E (fye Dec 31, 2012):

38.64

PEG Ratio (5 yr expected):

1.70

Price/Sales (ttm):

11.56

Price/Book (mrq):

9.19

Enterprise Value/Revenue (ttm):

10.56

Enterprise Value/EBITDA (ttm):

43.14

Income Statement

Revenue (ttm):

3.54B

Revenue Per Share (ttm):

8.46

Qtrly Revenue Growth (yoy):

31.90%

Gross Profit (ttm):

2.36B

EBITDA (ttm):

867.36M

Net Income Avl to Common (ttm):

643.39M

Diluted EPS (ttm):

1.49

Qtrly Earnings Growth (yoy):

109.90%

2. Rackspace Hosting, Inc. (RAX)

Rackspace is a leader in the hosting and cloud computing industry. The company provides products under the Fanatical Support brand. In August of last year, the company launched Cloud Servers for Microsoft's (MSFT) Windows. Last December, it brought to market two new products: the Rackspace Cloud and the Critical Sites to service the Enterprise segment of the market. In January, the Company launched Cloud service in the United Kingdom.

The stock currently trades around $43 and has a forward P/E of 53.34. The highest analyst one year price target for RAX is $52.

RAX 52 Week Chart

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RAX 52 Week Chart

Key Data:

Valuation Measures

Market Cap (intraday):

5.60B

Enterprise Value (Dec 7, 2011):

5.68B

Trailing P/E (ttm, intraday):

90.79

Forward P/E (fye Dec 31, 2012):

53.34

PEG Ratio (5 yr expected):

2.19

Price/Sales (ttm):

5.92

Price/Book (mrq):

10.27

Enterprise Value/Revenue (ttm):

5.94

Enterprise Value/EBITDA (ttm):

20.94

Income Statement

Revenue (ttm):

956.53M

Revenue Per Share (ttm):

7.43

Qtrly Revenue Growth (yoy):

32.50%

Gross Profit (ttm):

530.72M

EBITDA (ttm):

271.31M

Net Income Avl to Common (ttm):

64.90M

Diluted EPS (ttm):

0.47

Qtrly Earnings Growth (yoy):

69.20%

3. RightNow Technologies, Inc. (RNOW)

RightNow provides RightNow CX, which is an on-demand, cloud-based assortment of software and services. Its professional services group combines project management with technical and business-focused consulting services. The company's products include RightNow CX, RightNow Web Experience, RightNow Social Experience, RightNow Contact Center Experience, RightNow Engage, RightNow CX Cloud Platform and RightNow Natural Language Search.

The stock currently trades around $43 and has a forward P/E of 51.70. The highest analyst one year price target for RNOW is $43.

RNOW 52 Week Chart

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RNOW 52 Week Chart

Key Data:

Valuation Measures

Market Cap (intraday:

1.42B

Enterprise Value (Dec 7, 2011):

1.35B

Trailing P/E (ttm, intraday):

57.83

Forward P/E (fye Dec 31, 2012):

51.70

PEG Ratio (5 yr expected):

3.35

Price/Sales (ttm):

6.57

Price/Book (mrq):

17.49

Enterprise Value/Revenue (ttm):

6.26

Enterprise Value/EBITDA (ttm):

56.70

Income Statement

Revenue (ttm):

216.19M

Revenue Per Share (ttm):

6.59

Qtrly Revenue Growth (yoy):

18.70%

Gross Profit (ttm):

130.46M

EBITDA (ttm):

23.86M

Net Income Avl to Common (ttm):

26.62M

Diluted EPS (ttm):

0.74

Qtrly Earnings Growth (yoy):

-47.10%

4. NetApp, Inc. (NTAP)

NetApp provides storage and data management solutions. It has a suite of application, virtualization, cloud and service provider solutions. The company offers data storage solutions that incorporates its unified storage platform with the functionality of its data and storage resource management software. NetApp markets and sells its array of products both directly and through its channel partners.

The stock currently trades around $37 and has a forward P/E of 13.45. The highest analyst one year price target for NTAP is $68.

NTAP 52 Week Chart

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NTAP 52 Week Chart

Key Data:

Valuation Measures

Market Cap (intraday):

13.40B

Enterprise Value (Dec 7, 2011):

10.01B

Trailing P/E (ttm, intraday):

22.62

Forward P/E (fye Apr 29, 2013):

13.45

PEG Ratio (5 yr expected):

0.97

Price/Sales (ttm):

2.37

Price/Book (mrq):

3.54

Enterprise Value/Revenue (ttm):

1.76

Enterprise Value/EBITDA (ttm):

9.97

Income Statement

Revenue (ttm):

5.68B

Revenue Per Share (ttm):

15.53

Qtrly Revenue Growth (yoy):

24.80%

Gross Profit (ttm):

3.33B

EBITDA (ttm):

1.00B

Net Income Avl to Common (ttm):

652.10M

Diluted EPS (ttm):

1.64

Qtrly Earnings Growth (yoy):

0.60%

5. Citrix Systems, Inc. (CTXS)

Citrix designs, develops and markets technology solutions that enable information IT services to be securely delivered on demand independent of location, device or network. The company markets its products directly to enterprise customers, over the Web, systems integrators, as well as indirectly through resellers, distributors and original equipment manufacturers In July, the company acquired Cloud.com.

The stock currently trades around $71 and has a forward P/E of 25.74. The highest analyst one year price target for CTXS is $100.

CTXS 52 Week Chart

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CTXS 52 Week Chart

Key Data:

Valuation Measures

Market Cap (intraday):

13.33B

Enterprise Value (Dec 7, 2011):

12.88B

Trailing P/E (ttm, intraday):

39.78

Forward P/E (fye Dec 31, 2012):

25.74

PEG Ratio (5 yr expected):

1.63

Price/Sales (ttm):

6.45

Price/Book (mrq):

5.13

Enterprise Value/Revenue (ttm):

6.09

Enterprise Value/EBITDA (ttm):

23.31

Income Statement

Revenue (ttm):

2.12B

Revenue Per Share (ttm):

11.28

Qtrly Revenue Growth (yoy):

19.70%

Gross Profit (ttm):

1.65B

EBITDA (ttm):

552.60M

Net Income Avl to Common (ttm):

342.00M

Diluted EPS (ttm):

1.80

Qtrly Earnings Growth (yoy):

5.00%

Many feel that some of the above names are overvalued, that SAP overpaid for SuccessFactors and that it is presently a challenging task to monetize the cloud. I believe there is room for considerable growth and increased competition in the space and will continue to be on the look out for the next potential cloud winner to add to my portfolio.

Abbreviation Guide for the above tables:

K = Thousands; M = Millions; B = Billions

mrq = Most Recent Quarter (as of Sep 30, 2011)

ttm = Trailing Twelve Months (as of Sep 30, 2011)

yoy = Year Over Year (as of Sep 30, 2011)

lfy = Last Fiscal Year (as of Dec 31, 2010)

fye = Fiscal Year Ending

Source: 5 Cloud-Related Companies To Consider For 2012