Take a look at our previous video where we discuss The Cloud in greater detail. In this video, let’s look at SuccessFactors (SFSF), a company that offers “Integrated Business Execution Solutions” by “focusing on the three pillars of Business Execution excellence—Business Alignment, Team Execution and People Performance.”
Wait! What was that? Don’t worry about understanding what that means, it’s your basic management jargon meant for people with a Six Sigma Black Belt. SuccessFactors sells software programs to companies, but unlike traditional software, the programs are not installed on a local computer, rather those programs are accessed via online services. The programs are geared towards performance and productivity gains (your two basic management tenets).
SuccessFactors is trading at a forward PE of 246. Last Friday, it dipped from $32 to $27 on unusually high volume, rebounding and closing at $29.58. Just like the management laced jargon all over it’s website, it’s unclear why the stock took such a bearish fall on Friday. Expect more downside on this one.