Olik Technologies: Short Based on Falling Growth and Competition

June 7, 2012

Qlik Technologies (NASDAQ: QLIK, $22.42) was recommended at our May New York idea forum as a Short.  This provider of business intelligence solutions has seen its top-line growth rate decline from 40% to 25% in recent quarters.  The company generates 60% of its revenue from license sales as opposed to recurring revenues.  60% of total sales comes from Europe.  In addition, the competition has gained momentum recently and is scoring higher with user in customer satisfaction and support.  Costs have been rising at an alarming rates.  With multiples above the peer group, the presenter believes QLIK represents a good shorting opportunity at this level.

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