Author Topic: PLAN - ANAPLAN  (Read 379 times)

walkie518

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PLAN - ANAPLAN
« on: November 15, 2019, 04:10:24 PM »
I'm just trying to wrap my head around competitive advantage here.

It seems that the management and the board are A+ in every measure.  Those who are buying the stock here and supporting the company too are A+ outfits.

I'm trying to see through the figures and understand why the market has discounted and if this company might or should fall much further. 

Anaplan trades at 20x but quarterly rev growth is +45%

The business is profitable on a gross basis and there is some potential for a short squeeze (11% sold short)

Insiders own a lot of the company (22%?!), interests are aligned and I don't think the goal here is to raise capital in public equity markets then stomp out investors in the stock ... I think this would tarnish the reputation of everyone involved and, of course, destroy a lot of value

Sure, the stock has doubled over the last year but is ~40% under its high

I don't like the go-to-market strategy as it implies what's wrong with many Saas companies, but $240m in sales in 2019 is not nothing growing from $170m in 2018

The product line-up also looks pretty solid, but hard to assess how it gets sold if it can't sell itself?