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Sandeep Grover is a technology investor and works as a senior product manager at
  • CTCT: Buy on current weakness 1 comment
    Dec 28, 2009 2:00 AM | about stocks: CTCT, CRM, CNQR, SFSF, TLEO, N, BBBB, VOCS
    Constant Contact (NASDAQ:CTCT), a leading on-demand email marketing company has declined almost 32% from its July 30th high of $22.70. The stock is currently trading at 2.8x EV/Rev, a big discount to its peer SaaS companies avg of 5.2x (Please see the comps analysis below).
    CTCT chart
    Nothing major has happened since July 30th for CTCT – The Company has beaten estimates, has issued a decent guidance for the current quarter and has been growing much faster than other SaaS companies. The only significant event that has happened is the CFO transition that CTCT announced on Dec 1st. Looking at the above chart and comparables below, it seems like the stock is mainly being driven down by technicals and is perhaps a solid buy on this weakness.

    CTCT Comps

      An impressive growth rate, a retention rate of more than 97% on a customer base of more than 300,000 and a cheap valuation suggests a strong buy.


    Disclosure: No position

    Disclosure: No Positions
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  • j_remington
    , contributor
    Comments (1341) | Send Message
    CFOs don't leave good companies unless they are getting a better offer elsewhere or due to health issues.
    30 Dec 2009, 09:49 AM Reply Like
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