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The Ubika Research Tech Stock Watchlist
| RightNow Technologies (NASDAQ:RNOW) |
| Company Name: |
RightNow Technologies |
| HQ Location: |
Bozeman, Montana |
| Company Website: |
www.rightnow.com |
| Shares Outstanding |
31.99 Million |
| Stock Price (July 28, 2010) |
$ 15.51 |
| Market Cap |
$496.1 Million |
| 52 Week Range |
$11.55 - $19.99 |
| Average Daily Volume |
198,000 |
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The Ubika Research Tech Stock Watchlist is very useful to find interesting junior tech stocks. Quite often smallcap tech stocks and penny tech stocks offer very compelling growth and are well-suited for smallcap investment. Tech is good space to find hot Smallcap stocks and penny stock picks, and this segment provides information on such companies.
Share Highlight / 1-Year Stock Chart
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Business Overview
RightNow Technologies Inc. (RNOW) provides on demand (cloud-based)customer relationship management (CRM) software solutions and services that help organizations improve customer experiences in cost efficient way. RightNow's technology enables an organization’s service, marketing and sales departments to use common platform to deliver and market their services through multiple communication channels, including web, voice, email, chat, telephone, and proactive email communications. The company uses on demand cloud based method through a multi-tenant hosted system, to reduce the cost and risk compared to that of traditional enterprise CRM. Additionally company offers other services like business process optimization and lifetime product tune-ups to improve customers’ efficiency. + More info
What is interesting?
- Company is well established in cloud computing that is considered by many as the next big thing in technology. The company is specialized in the area of customer experience.
- Cloud computing is Internet-based computing, whereby shared resources, software and information are provided to computers and other devices on-demand, like electricity. Computing in which services and storage are provided over the Internet (or "cloud").
- The company’s expertise is in integrating the multiple channel of customer interaction like call center, web, social media etc to offer a consistent customer experience across all channels. This is a core critical function for organizations and hence the company’s products are not easily replaceable.
- Gartner (a leading IT research firm) predicts 20% of all IT assets will migrate to the cloud by 2012. Further Gartner says the cloud computing market will compound at an annual rate of 28% from $47 billion in 2008 to $126 billion by 2012 and hit $150 billion in 2013.
- International client base with more than 1900 companies and government agencies depend on RNOW‘s solutions. This offers diversification for investors and revenue stabilization for the company. The company has a deep roster of blue chip corporations as its clients in a range of industries.
- Company can leverage on many strategic partnerships it has in different fields with leading providers like Deloitte and TATA (global consulting services), Pivotal Veracity (email deliverability solutions), success Metrics (business intelligence and analytical on-demand software solutions) and others.
- With an increase in IT spending in companies worldwide after recession, RNOW is well positioned to take advantage and increase its market share.
- Company has a subscription based recurring revenue model that brings some predictability to their revenues. In 2009 around 70% of total revenue was recurring.
- 12 years of revenue growth shows the company has execution capability.
- Company has moved from losing money in 2007 & 2008 (EPS of minus $0.40 and $0.04) to positive EPS of $0.39 in 2009. With positive economy, new products and new customers the company is expected to keep this trend in earnings growth in the coming years.
- For the past two years company has demonstrated improvement in operating margins, this has led to increased profits.
- Strong balance sheet with no debt allows the company to invest in future.
- Company’s revenue is expected to increase as it has an order backlog of $196 M in Q1 of 2010.
Risks
RNOW revenues mostly depend on single group of product with RightNow service generating approximately 76 % of the company’s revenue. Moreover company has high R&D cost that is currently around 12% of its revenue. IT expenditure depends on the economic recovery. If the economy were to have a double dip or slower recovery the company’s revenue growth can be affected. Company is betting big on cloud computing and it might so happen that cloud computing trend doesn’t last long.
Note: This Tech stock watchlist is brought to you by SmallCapPower analyst "Raj Ravindran"
RightNow Technologies News
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