ClickSoftware Technologies (CKSW) - The Technology Gem of Givat Shmuel, Isreal
As investors scramble to make sense of the short term terrors that pester the markets (GMâ€™s $39 billion write off, E-Trades bankruptcy scares, Blackstones quartly loss and two major financial houses giving the boot to their CEOâ€™s all in a weeks span), I was busy looking for opportunities with a touch of international flavor.
ClickSoftware Technologies (CKSW:NASDAQ, SECTOR: Technology, INDUSTRY: Software & Programming), based out of Givat Shmuel, Isreal (founded in 1979), describes themselves as a provider of mobile workforce management and service optimization solutions. The company’s products are used by customers in the telecommunications, utilities, financial services, aerospace, defense, semi-conductor, and home service industries. The Company;s Service Optimization suite includes workforce planning, optimized service scheduling, intelligent problem resolution, mobile workforce management, and business analytics, connecting various organizational levels. The Company’s Service Optimization solutions suite includes ClickSchedule, ClickAnalyze, ClickPlan, ClickForecast, ClickFix, ClickMobile and ClickLocate.
It markets and sells its products through direct sales force located in North America, Europe, and the Asia Pacific region, as well as through reseller agreements with partners. With over 50% of CKSWâ€™s business coming from overseas, this was the international exposure I was looking for. Now for a quick technical and fundamental breakdown of the stock and why it goes higher from here.
While an economic slowdown would affect many businesses the need for more efficient service scheduling is not going to change. Electrical grids continue to expand globally, telecom services continue to expand globally and computer use and networks continue to expand globally. All of these require service fleets. They all require optimized scheduling. And who is providing the best schedule optimization software on the planet?
CKSW also provides a tool that aids in helping reduce greenhouse gas emissions. As Click Software is increasingly recognized as a “Clean Tech” business, it will attract both new customers and new investors.
Fundamentally I like the stocks Relative P/E Ratio, Cash flow, debt/equity ratio, EPS rank, Price rank and Group rank. Technically the stock continues to look impressive on my four key fronts: price, volume, trend and pattern. Above you will see a graph of my technical analysis of the stock including its critical support trend and a Fibonacci retracement confirming the support that sits just under the stock price now. This offers a low-risk entry point to a stock that I believe will have a stellar 2008.
Full Disclosure: Long the shares of ClickSoftware (CKSW).