Got my initial purchase of Pivotal at near the IPO price. I think this something worth looking at. Everyone doing cloud deployments are using their tools.
I loved Pivotal as part of EMC. I'm amazed though that they are not profitable yet - I'm worried they got loaded with bloated cost base that has been offloaded onto them as part of the IPO. Growth isn't as great as it used to be.I will definitely keep an eye on this one.A
Since this Gary guy has been mentioned here a few times recently, here is an article he just put out on Pivotal. Pivotal Software: Skids In IPO, Decent Potential Upside https://seekingalpha.com/article/4164628?source=ansh $PVTL
Revenue growth last year was only 20% and has been choppy as Gary points out. Services revenue carries low gross margins and is a big part of the current equation. Plus a weird structure where Dell owns all of the voting rights essentially. Pivotal doesn’t excite me. A.J.
https://seekingalpha.com/article/4164628-pivotal-software-sk...In the article, the author suggests it seems that investors are skittish regarding the company's relationship with Dell For valuation: Assuming 15% revenue growth for the coming year, Pivotal currently trades at 5.84x EV/FY18 revenues... At first glance, Pivotal's valuation looks rather cheap, especially when considering that fellow PaaS company MuleSoft just got bought out at ~16x forward revenues. For what its worth, I think 15% growth is very conservative as it has been growing over 20% - and out in the industry Pivotal adoption is accelerating and PCF has become a must have cloud tool set for many enterprise areas including the financial industry.My main reason for investing is that I'm a client and user, and I can see real acceleration in the take up of this software through the financial industry and other enterprise IT shops. I've just dipped my toes, and will watch to see if I should get in more deeply.
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