Although many of our readers will know NICE as a security products company, those products represent only about 24% of the company's revenues. Evaluating NICE is more complicated than most technology companies. The business is a complicated one with several quite different businesses, and they have been in a period of rapid acquisitions. This makes it difficult to assess how well the new acquisitions are running. Nevertheless, the management has been running the company profitably, and is generating some serious cash, so we've declared this one to watch.
We believe our value-added to you, dear reader, is to understand the industry, the company, its technology and its competitors enough to assess whatever rosy story management is telling us (and itself). We've added NICE to our watch list as a potential buy, and we'll continue to monitor how the new businesses are doing.
- Nice is an Israeli business, operating globablly, however they have ADR's which trade on US stock exchanges.
- Nice runs several businesses: The main ones are Financial crime and compliance analysis products, public safety and security products, and Enterprise interactions solutions
- Since 2008 Nice has acquired eight quite different companies, three of them in 2010 alone.
- Revenue in 2010 was USD $689.4 Million up from $583.1 Million in 2009, however much of that growth came from acquisitions.
- Earnings in 2010 were $48.7 Million (GAAP),
- They had approx. $10 per share in cash and Marketable securities at the end of 2010, and no debt. It seems the likelyhood of continued acquisitions is high.
You can read about Nice's business segments yourself at nice.com
Nice may be a good investment. We might buy it ourselves but we wouldn't want to ask our friends to buy it without a little more time to see how the company is doing with the new acquisitions. Conclusion: watch and wait.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.