This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stephanie Link's Can Kickers: Notes on Informatica

NEW YORK ( TheStreet) -- Last night Informatica (INFA) negatively preannounced earnings and shares are down over 26% in premarket. The company blamed softness in Europe and also internal execution issues. The Europe weakness isn't a surprise especially after Oracle and Adobe both saw European slowness but the magnitude of the miss was. License revenues are now expected to fall 17-19% versus the positive 10% consensus. Revenues missed consensus by 13% and earnings by 24%.

Europe certainly was a factor but it's also company specific issues with a management transition and sales execution issues as well as tougher competitors in Oracle (ORCL), SAP (SAP - Get Report), IBM (IBM - Get Report) as well as Citrix Citrix Systems (CTXS - Get Report) and VMware VMware (VMW - Get Report). It's always interesting to look at a stock that falls this much in a day to potentially buy it, but this one could stay depressed for a while - especially given its head of worldwide sales leaving and new products from its competitors (especially at SAP and Oracle). Plus it has a P/E multiple of 30x - so there is no margin for error.

EMC (EMC) owns 80% of VMware and will likely be hit on the news (its total European exposure is 30% of total revenue) but it's one that we continue to like in the low $20s. EMC is the leader in data storage, has the broadest product set (it announced 40 new products this year in high, medium and low end product lines), continues to take share from its biggest competitor (Network Appliance) and trades at a much more reasonable multiple 11x forward estimates.

To see our latest thoughts on these and other stocks please visit Action Alerts Plus and Real Money.
Co-Portfolio Manager of Jim Cramer's Charitable Trust Portfolio, Action Alerts PLUS Portfolio. This includes developing a macro outlook, stock selection, and daily written analysis in managing the fund and for subscribers to follow and participate. It also includes a weekly summary report of the strategy, positions and ranking of each stock in the fund. Promote the product through weekly videos independently and with Jim Cramer on the website. Strategy responsibility includes overseeing all content, talent, supervision and developement of the premium website services. Appear regularly on Maria Bartiromo's "The Closing Bell", Larry Kudlow's "The Kudlow Report" and CNN affiliate The Wall Street Shuffle.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
INFA $0.00 0.00%
CTXS $63.17 -1.20%
IBM $127.02 -0.20%
SAP $74.29 -1.50%
VMW $44.66 0.27%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs