Live Wires
Tech stocks have been super-charged in recent
months. Just how much juice do they have left?
By: Mark Veverka
Posted October 29, 2007
The San Francisco-based money manager also likes application-software
outfit PROS Holdings (PRO), another pick that strays from our consumer
theme. Thacker thinks that one of the next mega trends in software
is going to be predictive analytics and pricing optimization. PROS
was created to tackle airline-fare pricing, but was forced to diversify
after 9/11. Since then it has added promising new clients in manufacturing,
distribution and services; airlines will still account for about
34% of its $61 million in estimated 2007 revenues. Its software
is popular because it can do things like making sure a job bid
is profitable.
Revenue is recognized upon implementation and delivery of the
product -- rather than contract closing -- which provides more
visible and consistent accounting for investors. The Street sees
2008 revenues growing about 25%. Thacker thinks that can continue.
Shares were trading around 13.50 last week and the consensus price
target is 16. Thacker believes that's low.
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