My nerves are on edge13 Nov 2012 20:13
My enthusiasm for SDL is based on its low multiple(s) for a well placed, growing tech play. I have been trundling through the market (techs here and Nasdaq), and the EV/EBITDA multiple make little sense unless you don't believe SDL is a high growth tech - unless you see SDL as either (i) an altogether more pedestrian play that should be rated at EV/EBITDA of 7-9, say OR (ii) even worse, in decline (but that seems unlikely)
I guess the analysts at Investec (have you seen the report that triggered this downturn?) are saying something like (i) - that the multiples for SDL should not be so high if growth is dependant on services (because less scalable)
Have you any thoughts/views, Eco? Maybe your stop loss is the way to go after all..