ClickSoftware Shares Plunged: What You Need to Know (CKSW)

ClickSoftware Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Israeli software company ClickSoftware Technologies (Nasdaq: CKSW ) dove as much as 17% in intraday trading after the company cranked down its fourth-quarter expectations.

So what: Analysts were looking for $20 million in revenue from ClickSoftware's fourth quarter, but the updated guidance puts the company's top line at just $18 million. In addition, the company said that higher headcount and a write-off due to a customer bankruptcy will also leave the bottom line lower than planned, though it didn't offer a specific number.

Now what: In the company's statement, management remained upbeat about the company's growth and the upcoming year. Investors, however, were obviously disappointed with today's update, particularly after they bid shares up nearly 100% (prior to today's drop) from the stock's summer low. The onus will now be on management to show that the fourth-quarter miss was a fluke and that optimism is still warranted.

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Report this Comment On January 12, 2011, at 9:25 AM, 50yardline wrote:

I have owned CKSW on two occasions:
- bought @ $5.62 on 11/10/2009
- sold @ $6.11 on 05/14/2010, after the stock had gone as high as $7.76 on 03/09/10, but before it dropped to a low of $4.92 on 06/09/10. This represented an 8% gain for about 6 months of ownership.
- bought @ $6.44 on 09/27/2010
- sold @ $9.12 on 01/07/2011, before it dropped to
$8.00 on 01/11/11. I did much better the second time around, a 42% gain for about 3 1/2 months of ownership. I had a gut feeling that something in the earnings would disappoint, based on my first time ownership of CKSW.
I think CKSW is the type of stock that can be traded profitably. I would consider buying again in the
$6 to $7 range, with a target selling price of $10.

updated 8 hours ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

CKSW	$8.80		+0.12	+1.38%
Click Software Tec…		CAPS Rating:

10

ClickSoftware Shares Plunged: What You Need to Know

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Report this Comment On January 12, 2011, at 9:25 AM, 50yardline wrote:

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