Why Demandware Inc. Shares Popped Today

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 Demandware Inc. (NYSE: DWRE  ) rose 10% to start the week following speculation it could be a takeout target.

So what: With shares of Demandware having drifted downward in recent weeks despite turning a narrower-than-expected first quarter loss earlier this month,, FBR Capital's Daniel Ives recently suggested salesforce.com would do well to acquire Demandware for its enterprise cloud commerce solution.

Now what: Still, Demandware isn't exactly cheap, trading around 16 times trailing 12-month sales and 340 times next year's estimated earnings, and even that's a big premium to pay for Salesforce, which itself is still striving to achieve sustained profitability. While such a deal could certainly fall into place, don't count on it as a crucial part of your investing thesis. For now, I'm perfectly happy continuing to watch Demandware from the sidelines.

Top dividend stocks for the next decade
In the meantime, the smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.


Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2963835, ~/Articles/ArticleHandler.aspx, 12/21/2014 7:46:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement