Tangoe Inc fka TNGO

[JohnCM]

Tangoe Retains $28 Price Target and 1 Stock Analysis to Eye
By Leah Powell
October 19, 2012
Tangoe Inc NASDAQ:TNGO

According to Deutsche Bank, Tangoe’s first user conference confirmed that there is strength in the company’s business. The firm believes that the recent pullback in the company’s shares creates a buying opportunity, and it maintains its Buy rating and a $28 price target on the stock.


Tangoe (TNGO) is a leading global provider of communications lifecycle management (CLM) software and services to a wide range of global enterprises, including large and medium-sized businesses and other organizations. CLM encompasses the entire lifecycle of an enterprise's communications assets and services, including planning and sourcing, procurement and provisioning, inventory and usage management, mobile device management, invoice processing, expense allocation and accounting and asset decommissioning and disposal. Tangoe's communications management platform is an on-demand suite of software designed to manage and optimize the complex processes and expenses associated with this lifecycle for both fixed and mobile communications assets and services. Tangoe's customers can also manage their communications assets and services by engaging Tangoe's client service group.


Insider sells

Gary Golding sold 137,148 shares on August 20-22. Gary Golding serves as a director of the company.
Richard Pontin sold 71,300 shares on August 20-21. Richard Pontin serves as a director of the company.
Jackie Kimzey sold 36,910 shares on August 20. Jackie Kimzey serves as a director of the company.
Charles Gamble sold 6,000 shares on August 21-22. Charles Gamble is a founder and Senior Vice President of Customer Account Management.
Financials

The company reported the second-quarter financial results on August 8 with the following highlights:

Revenue $36.3 million
Net income $0.3 million
Cash $78.4 million

Outlook

As of August 8, 2012, Tangoe is providing guidance for its third quarter and raising its full year 2012 guidance both including and excluding the expected positive financial impact from the acquisition of Symphony Teleca's TEM Business:

Third Quarter 2012 Guidance: Total revenue is expected to be in the range of $39.2 million to $39.7 million. Adjusted EBITDA is expected to be in the range of $5.6 million to $5.8 million. Non-GAAP net income per share is expected to be approximately $0.12 based on approximately 41.4 million weighted-average diluted shares outstanding.
Full Year 2012 Guidance: Total revenue is expected to be in the range of $151.0 million to $152.5 million. Adjusted EBITDA is expected to be in the range of $22.0 million to $22.4 million. Non-GAAP net income per share is expected to be in the range of $0.45 to $0.46 based on approximately 40.5 million weighted-average diluted shares outstanding.

"The stock has a bearish price objective of $15 from the Point and Figure chart. The stock is trading at a forward P/E of 32.02. The stock has seen steady insider selling since August 2011. I believe there is an opportunity for a short entry with a target at $15 and a stop loss at $23."