It would be great if we could all have access to the same investing information that industry insiders have.
Luckily for you, I’m here to expose those insiders and their information, and make sure you reap the same benefits they do.
To begin with, let’s take a look at a recent deal that went down between Google and a company you might want to consider getting a piece of.
On February 15th, Google announced it was acquiring an Internet of Things, IoT, platform from LogMeIn, Inc. (LOGM) called Xively.
The Internet of Things simply refers to the ability of devices to connect to the internet, basically what we consider the cloud to be.
Xively is an IoT platform that helps companies create IoT devices that can connect to the internet.
The acquisition of Xively will play a big role in Google’s cloud computing services.
What was the price of this advantageous deal?
A cool 50 million dollars.
Not too shabby of a profit for LOGM who purchased Xively themselves in 2011 for $15 million.
As a company that has been heavily invested in the Internet of Things movement, many wondered if the sale of Xively to Google signaled the end of LOGM’s IoT involvement.
In a statement released by LOGM they said that they will continue to play a role in the IoT, but not in the arena of IoT platforms.
They believe that Google Cloud and its cloud computing services will benefit more from Xively than LOGM would.
While this seems like an admirable show of faith and humility, let’s not forget about the $35 million LOGM made from Xively’s sale.
And LOGM is not just selling off parts of their company, they are still expanding and developing.
The week before Google’s acquisition of Xively was announced, LOGM had just purchased Jive Communications for $357 million, signaling their intent to focus on unified communications, as well as maintain their support and identity access businesses.
So why should you care about LOGM?
Well that’s largely up to you.
Their stock chart (which you can view for yourself on StockCharts.com) is an interesting one, as LOGM has time and time again dropped down to the moving average and immediately bounced back up.
This is something appealing to us as investors because it is predictable.
It informs us that, historically speaking, the time for us to get in is when the stock has dropped down and touches the line of support.
We can assume that it will bounce back up, as it has done in the past, and once it has reached that peak, we know it will likely fall back down again and it’s time for us to get out.
Now we must remember that these moves are based purely on what the stock has done in the past.
We are getting as close to predicting the future as we can, but there is no foolproof system.
In order to make the big paydays we want, we need to be willing to live a little and take some risks.
To make you feel better about potentially investing in LOGM, let me also tell you that LOGM has consistently beat expected earnings every single quarter of the last year.
So that should help you make your decision.
With their acquisition of Xively, Google will be better able to compete with the cloud-sharing services of Amazon and Microsoft.
Moving forward, LOGM will expand their core businesses, including online meeting and screen sharing, secure remote access, and password security capabilities.
Everyone wins in this deal, and you the investor should too, because you know the insiders are.
