FORT LEE, N.J., Jan. 5, 2012 /PRNewswire/ -- The National Inflation Association has just released the most important report ever created for investors looking to take advantage of the 2012 boom that is coming in social networking stocks. Facebook is now projected to have its IPO in April and is expected to raise $10 billion and start trading with a market cap of $100 billion. On a trailing twelve month basis, NIA expects this to equal a price/sales ratio for Facebook of approximately 25 and a price/earnings ratio of approximately 100.
Considering that Facebook has already reached 50% market penetration in the U.S., NIA believes that this growth premium is too high to pay for Facebook shares. Just one year ago, Goldman Sachs managed a $1.5 billion Facebook private placement to its international clients at a market cap of only $50 billion. Microsoft purchased 1.6% of Facebook in 2007 at a valuation of only $15 billion. While these investors will do well because of the Facebook IPO, NIA believes that investors who buy Facebook shares in 2012 will lose. NIA believes there is no way that Facebook can keep up its triple digit revenue growth without capturing strong market penetration in China. Despite Mr. Zuckerberg's repeated trips to China and meetings with Chinese government officials, there are no signs of the Chinese government removing its Facebook ban anytime soon.
NIA's report features a publicly traded social network company in China that NIA believes is undervalued. However, the main focus of NIA's report is the B2B enterprise social network solutions space. The market for B2B enterprise social solutions will likely approach $6.4 billion by the year 2016. NIA predicts that it will be the fastest growing technology space of the decade. Right now, there are only two publicly traded pure plays in this space.
The market leader in B2B enterprise social networking is Jive Software, which went public in an IPO in December of 2011. Jive was one of the hottest IPOs of 2011. Not only did Jive go public at $12 per share, which was above the $8 to $10 initial offering range, but Jive managed to sell 15% more shares to the public than what was originally expected. Overall, Jive raised $161.3 million in its IPO or 38% more than the $117 million that Wall Street expected Jive to raise.
Although NIA is very bullish on Jive's long-term growth prospects, NIA considers Jive to be overvalued with a market cap of $886 million and an enterprise value of $685 million. Jive is trading for about 13 times its sales of $69.44 million when the company lost $44.9 million in the trailing twelve months. The other public pure play in the B2B enterprise social solutions space is a company that was one of the biggest winners during the 1999 dot-com boom, but almost nobody on Wall Street follows the company today. This company is taking on Jive directly with a competing social networking platform for businesses called Clearvale, yet Wall Street right now is paying no attention to them. NIA believes this Jive competitor could benefit most from the 2012 social network boom and could have the most upside potential.
The company is BroadVision Inc. and it is currently NIA's largest position in its portfolio. BroadVision is currently trading for $11.35 per share when the company has $12.58 per share in cash and no debt. BroadVision is trading below cash and NIA believes it is the biggest bargain in the market today, with an enterprise value below zero. BroadVision already has revenues of $18.45 million with a small net loss of only $3.3 million. In NIA's eyes, BroadVision has the best possible management team, with a CEO who is also currently on the Board of Directors of two multi-billion dollar publicly traded software companies.
To learn more about BroadVision, Jive Software, Facebook, and all of the other publicly traded social networking stocks as well as private social network companies that could go public in 2012, NIA is currently offering its 2012 Social Network Stocks report by going to: http://inflation.us/social2012.html
The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. NIA offers free membership at http://www.inflation.us and provides its members with articles about the U.S. economy and inflation, daily news stories and blog updates, and important charts not shown by the mainstream media. NIA is the producer of economic documentaries that have received a combined 17 million views including the critically acclaimed 'Meltup,' 'The Dollar Bubble,' 'End of Liberty,' 'Hyperinflation Nation,' and brand new 'College Conspiracy.' NIA provides unbiased reviews of the major online sellers of gold and silver bullion and also offers profiles of gold, silver, agriculture, oil, and alternative energy companies that could prosper in an inflationary environment. NIA is the creator of 'NIAnswers,' the world's most comprehensive database of questions and answers about inflation, currencies, debt, and precious metals.
NIA owns 139,950 shares of BroadVision that it purchased at an average price of $8.8549 per share. NIA has agreed to a 60 day holding period on its initial position of 122,000 shares but intends to sell its shares at some point in the future after the date of February 12th, 2012. NIA intends to sell its additional 17,950 shares of BroadVision in the future and can sell them at any time. NIA's co-founders have also been referred business in the past from somebody who has filed as a large BroadVision shareholder. NIA also reserves the right to accumulate additional shares of BroadVision at any time. NIA's report is intended for informational purposes only and does not provide investment advice. Neither NIA nor its co-founders are investment advisors or broker/dealers. Past performance is not an indicator of future returns. NIA's stock suggestions are not a solicitation or recommendation to buy or sell any security. Never make investment decisions based on anything NIA says. Do not rely on information from NIA to make investment decisions. Only use the information contained in NIA's report as a starting point for you to conduct your own research and make your own investment decisions. NIA does not guarantee the accuracy of information in its report. Stock market investing is extremely risky. NIA's co-founders may have previously discussed some companies in other media outlets.
Contact: Gerard Adams, 1-888-99-NIA US (1-888-996-4287), email@example.com
SOURCE National Inflation Association