1-Star Stocks Poised to Plunge: BroadVision?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, e-commerce business solutions provider BroadVision (Nasdaq: BVSN  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at BroadVision's business and see what CAPS investors are saying about the stock right now.

BroadVision facts

Headquarters (Founded) Redwood City, Calif. (1993)
Market Cap $165.1 million
Industry Internet software and services
Trailing-12-Month Revenue $17.6 million
Management Chairman/CEO Dr. Pehong Chen (since 1993)
CFO Shin-Yuan Tzou (since 2008)
Return on Equity (Average, Past 3 Years) (2.9%)
Cash/Debt $54.1 million / $0
Competitors Microsoft
Open Text
Oracle

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 69% of the 139 members who have rated BroadVision believe the stock will underperform the S&P 500 going forward.

Late last month, one of those bulls, fellow Fool Sean Williams (TMFUltraLong), touched on BroadVision's seemingly unsustainable valuation:

Look its 1999 all over again? For those of you who don't recall, Broadvision went down in a fiery heap of disaster when the Internet bubble burst, but prior to that it traded very similarly to how it's trading now. What hasn't changed is BroadVision's consistency to lose money. Add those two together and there's little doubt in my mind this 300% share price jump will not hold the test of time.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Microsoft and Oracle. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 14, 2012, at 11:01 AM, super1337 wrote:

    I thought you could have done a better job explaining why this stock has had a big run up.

    The reason is because the formerly SEC charged Jonathan Lebed is heavily promoting this stock through the National Inflation Association. The NIA is just a front for his stock promoting pump and dump schemes.

    They are blasting out tens of millions of emails stating how it is a "great value" and "100% perfect technical buy" even after a 450% run up in price.

    That is the only reason this stock has gone up -- the annual earnings report was full of bad news. It showed 20% annual revenue declines and a $6M annual net loss.

    The CEO even came out and said "the Company noted that, during the past few weeks, there has been an unusually large amount of trading activity and price movement in its stock. The Company is not aware of any corporate developments that it believes would explain this unusual activity." Meaning that the run up in price was unjustified. Look for this to crash soon.

  • Report this Comment On February 14, 2012, at 12:49 PM, petomm wrote:

    Yeah, I been getting those emails from that website that calls themself National Inflation Association. They send out almost daily e-mails about Broadvision and how it should be bought right now.

    They recommended it back in January at around $7/share and they bought a bunch of shares in it. Now it is up at $35/share.

    It is the only stock they been talking about. Almost sounds like a pump and dump schemes. I had to unsubscribe to their email list because it really started getting annoying getting almost daily emails regarding just that one stock...

  • Report this Comment On February 14, 2012, at 4:19 PM, josh462 wrote:

    I also received the emails and noticed at the bottom there is a disclaimer that says NIA plans on selling it's shares after February 14, 2012. Also, their website is down now and gives a warning from Google about harmful software. I think you're right, this stock is going to crash soon.

    Also I saw this video that helps explain things about NIA...

    http://www.youtube.com/watch?v=8h-a1kKOkNM&feature=g-his...

  • Report this Comment On February 14, 2012, at 6:31 PM, petomm wrote:

    Good video....that explains why the stock has had such a huge run.....look for it to crash back down soon

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