Back in 2004, I bought stock of a small software company called Tibco (TIBX) at around $7. Within a couple of months, it shot up to $12, at which point I sold for a nice and tidy profit.
And now, almost seven years later, I’ve been re-introduced to Tibco by one of my favorite stock pickers on the Internet, Mr. Market.
In the past year, Tibco has enjoyed a nice run-up, from the lowly single digits to the now mid-20s. And it’s not all just chart momentum. There are actual numbers and events backing up the rapid rise in valuation:
1) The release of tibbr ®, a social networking platform for the workplace. Nothing new for the industry here, but with 23% revenue growth in Q4 2010, tibbr is quickly becoming a popular choice for companies due to a unique subject and classification system.
2) Q4 2010 net income increased 18% year over year from $31.7 million to $37.5 million.
3) 2010 sales increased 23% from 2009.
4) Repurchased 15.1 million shares in 2010.
The list goes on and on with other glowing facts you can find on any finance site (you should do your due diligence anyway), so I’m just going to hold my peace here. Analysts are expecting low figures relative to past performance and the company is growing to a size that might entice the big players out there (IBM, Oracle, etc.). We’ll see how the next several weeks play out, and when they do, it’ll be yet another nice and tidy profit from TIBX.