Friday, May 15, 2009

Long opportunity: PEGA

PEGA Long at 24.21.  Let's assume the world does not end tomorrow.  This is a software company that had 28% revenue growth this year and earnings that are galloping along... not too shabby for Armageddon recession.

Sure, it trades at a premium, but it has no debt and $4/share is cash.

Lottery ticket that could double, get acquired... or go to zero (doubtful).

My 2 cents on macro: if this economy recovers, intellectual property will pull us out of the tailspin.  Our greatest resource is still human capital and companies that can increase those returns for their clients will outperform.

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