I believe there has never been a more opportune time in history to invest into the social enterprise space. This is an unprecedented time for investors and one that can not be missed. The question still lingers which company will capitalize the most in the upcoming months as the biggest IPO in the history of Wall Street nears with social media giant, Facebook (FB).
Facebook is said to IPO with a valuation as much as $100 billion and the social media sector could be set to explode. There have been many companies that have capitalized already from this social media boom and this is just the beginning. The problem is that the investors that will be making the most return on investment from the Facebook IPO have already been positioned long ago and will most likely be selling during the first few months of being public as the new sheep decide to jump on the bandwagon a bit late.
I have been positioning myself in what I believe to be the new "Social Boom" which is the next mega-trend known as 'Social Enterprise.' The Social Enterprise space which is still very undiscovered combines three of the hottest sectors into one including cloud computing, social networking and mobile.
The leader in the social enterprise space, JIVE Software (JIVE), just hit a new 52 week high of $25.70 per share since its public debut December 13 at $12 per share. JIVE now has a market cap of $1.557 billion and after subtracting their net cash position of $167.5 million, JIVE's social enterprise 'Engage' platform is now receiving a valuation of $1.4 billion. After researching every competitor in this space, there is one company in particular that is way oversold and what I believe to be the most undervalued social enterprise stock in the world, Broadvision Inc. (BVSN).
BVSN is currently trading at $44.47 giving it a market cap of $204.43 million. If you subtract BVSN's strong cash position of $54.4 million and $17 million of their legacy products, BVSN's social enterprise 'Clearvale' platform is currently receiving a valuation of only $133 million. This valuation is an artificially low 1/11 of JIVE's platform valuation of $1.4 billion.
Not only is Broadvision's Clearvale being valued at a shocking 1/11 the valuation of JIVE's enterprise social platform, but Clearvale is also a much better platform. In BVSN's latest press release there are quotes from many top CEOs that validates this premise and I wouldn't be surprised to see leading social analysts rank Clearvale as the best social enterprise platform compared to competitors in the very near future. As Broadvision's CEO has recently stated, the company's Clearvale is "NBC - newer, better, cheaper." CEO Dr. Chen was quoted in a recent interview:
Newer because in relative terms we started this project later than the likes of Yammer and Jive. We give them credit for seeing this and understanding this but all their platforms started way over 10 years ago now, long before cloud became the dominant trend. Their own success has become an impediment because they are stuck on an architecture that is not where the future is pointed.
Better because we have great experience in having dealt with thousands of customers so we can use that expertise in this new platform.
And cheaper because we deliberately set our prices to be a long-tail type of approach. We used to charge customers millions of dollars; not anymore. We are happy for each customer to pay us $10,000 or $20,000 as we believe that is a lot more sustainable. Even though each is paying a lot less we make it back with much wider distribution than before Most investors are overlooking the fact.
Most investors don't realize that BVSN has been around for almost two decades and CEO Dr. Pehong Chen is an eCommerce pioneer and a Silicon Valley giant in the days before the dotcom bubble burst. BVSN has survived the first dot com bubble and with that experience it is set to create sustainability and real growth during this new social media phenomenon. Unlike many of the social enterprise companies today like Yammer and JIVE who have been trying to make changes to their platforms constantly to keep up with the future trend, BVSN is one step ahead of the competition.
Just this week, the company was a founding partner of one of the biggest digital conferences this year along side Microsoft (MSFT), Adobe (ADBE), Cisco Systems (CSCO) and Juniper (JNPR). At the conference, BVSN announced breaking new features to their Clearvale platform which can be read in their latest press releases. Furthermore, BVSN has long-term experience dealing with big clients like the U.S. government, U.S. military, banks, and Fortune 500 companies.
There has never been a better time to invest in such a solid long-term company taking this rapidly growing industry by storm then right now. I believe BVSN is set to bounce to new highs during the upcoming week now that the profit takers have sold on the news of BVSN headlining the Digital London Summit which ended Wednesday of this week.
Now that the weak hands are out there could be another massive short squeeze headed into next week which could potentially send it past its recent 52-week high of $56.46 and to new highs above $60 per share. The technicals continue to show many short-term dips with an overall long-term bullish trend which can be seen here - BVSN 3 Month Chart. This is by far the best chart I have ever seen in all of the years I have been trading.
Don't be left behind as a new paradigm shift of wealth is created with growing social companies like Broadvision. I have never seen such desperate measures taken before by short sellers and naked shorts but with the fundamentals, growth, management, booming industry and small float of BVSN, this is a shorter's worst nightmare. Currently, there are 428,893 shares short and this doesn't even include the naked short position which in my opinion is many times greater.
Also, the stock has been on the Reg Sho list for 40 days and counting. BVSN has been on the regulation sho list more than any other stock in the market (not including two ETFs) and is now listed as 'imminent buying' which could lead to a massive short squeeze.
Let the short squeeze begin.
My company has published a special report on Social Network Stocks which is highly recommended to learn more about BVSN and why it is the most undervalued social enterprise stock in the world. This report also discusses Facebook and competitors like JIVE and Yammer. To receive this exclusive report please click here.
Disclosure: I am long BVSN.
Additional disclosure: I currently own 164,902 shares of BVSN and 108,700 shares of JIVE. I intend to sell my shares and can sell them at any time. I reserve the right to accumulate more shares at any time.