For example, positive news yesterday:
- Keynote video of RIM Co-CEO Lazaridis at BlackBerry DevCon 2010 (click on "watch the general session")
Someone asked us if we think the uptrend in Sonic Foundry's stock will continue. We don't know. The near-term is near impossible to forecast correctly. We thought favorable fundamentals and results over the past year would already have pushed shares meaningfully higher. BUT, what we do know is that private market valuation (supported by recent M&A multiples) and earnings power suggest reasonable (non-egregious) valuations in the $20-30 range. Upside to estimates and additional, large-scale adoption around the globe could bring higher fair values for the company.
Disclosure: long SOFO.
© 2010 Jeffrey Walkenhorst
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