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 remote Internet access specialist LogMeIn (NASDAQ:LOGM) jumped as much as 7.5% today after positive coverage was initiated by Northland Securities.
So what: The investment group gave LogMeIn a $28 price target, and an outperform rating. Meanwhile, LogMeIn also announced the pricing and details of its new cloud sync and storage service known as Cubby. The service should be available by early 2013 and provides unlimited peer-to-peer syncing for both PCs and Macs and 100GB of cloud storage, among other features. LogMeIn said it's seen significant demand for Cubby from its beta users and is using a "freemium" mode, which has become popular with Internet services such as apps, with a free basic addition and monthly subscriptions to Cubby Pro at $9.99/month.
Now what: The Cubby rollout likely had something to with the outperform rating from Northland. LogMeIn CEO Michael Simon called it "a natural expansion of our successful remote access and collaboration business." The system should boost LogMeIn's already strong growth rate and help build its brand. LogMeIn shares have dropped 50% over the past year and have a sky-high P/E, but cash flow has been stronger than actual profits. Today's news could be the beginning of a turnaround for the stock.
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