Vignette Corp (VIGN)

[JoeBlack]

Market Edge Report

Despite VIGN’s fundamentals being strong as evidenced by the preponderance of positive fundamental comments, currently the market is unwilling to pay for that strength. The stock is fairly valued when compared to other stocks in its industry group. VIGN's management seems to be doing an adequate job of managing its operations efficiently so as to ensure future earnings growth when compared to industry averages. The company’s long and short term debt ratios are in line with industry averages reflecting a solid financial condition. Demand for the company’s products and services has been strong as sales for the last quarter grew 0.37% rising to $46.99 million. Recent trading activity shows that the stock is experiencing a price decline while also underperforming the market when compared to the S&P 500. In order for the price deterioration to stop, investors will have to decide that the current strong fundamentals warrant a higher price than the stock currently carries.