Tibco Software Inc. (TIBX) is an Activist Target Says Herb Greenberg

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Tibco Software Inc. (NASDAQ:TIBX) has been on a downfall ever since its Q2 results were announced. The company’s results were disappointing and with sales of about $251 million in Q2 and a non-GAAP EPS of about $0.14 which was way lower than the earnings per share Tibco Software Inc. (NASDAQ:TIBX) gave a year ago in the same quarter.

Tibco Software Inc. (NASDAQ:TIBX), Hewlett-Packard Company (NYSE:HPQ), Spotfire, business intelligence

Though there have been a lot of issues Tibco Software has to deal with, Herb Greenberg of CNBC feels that the stock has still got potential for growth. He raised a green flag on Tibco Software Inc. (NASDAQ:TIBX) and he felt the only reason he raised a green flag for the stock is due to the pattern of movement of the stock. He feels that the company has potential in BI space and can be a good buying option for a company looking to reign in the business intelligence space.

Greenberg said the stock is an activist stock because of the firms that are investing in Tibco. Investors like Eminence Capital and Praesidium investment management company, llc own Tibco Software Inc. (NASDAQ:TIBX)’s shares. These investors came out with a letter to the management to do something because the products of the company are very good. Spotfire is a business intelligence product by Tibco Software Inc. and its execution in recent quarters has been horrific according to Greeberg.

So the company has bit of a situation to deal with. Greenberg also recalls the bid made by Hewlett-Packard Company (NYSE:HPQ) made a bid for Tibco Software and it was when the company was trading above $30 and the bid was upwards at that price and Tibco turned it down. Greenberg feels that if a company looks to reign in the BI space, Tibco Software might be the company they are looking for. Here is what he said.

Josh Brown commented on this and here is what he said:

“If you look ata long term chart of Tibco, they do this atleast once a year. They destroy their investors over and over and over again.”

Brown felt that the management of the company needed a serious shift and he thought that Tibco’s stock is not worth buying. However he agreed with Greenberg and said that some company should own Tibco Software Inc. (NASDAQ:TIBX) down the line. Greenberg said that the performance of the company has degraded ever since Vivek ranadivé has bought the Sacramento Kings.

Disclosure: None

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  1. At the end of the quarter senior management goes “D4D : Dialling for Dollars… where “all ‘favors’ are ‘called in’ …
    A example is where TIBX mgmt “get a CIO his job” at a public company (with VivekR on the board no less) and then force him to regularly buy their software !!! Very recently despite him already scheduled to leave the company they ‘persuaded’ him to buy a ‘quarter saver’ and then they brag about it!

    Governance, SOX, SEC haha – no difference because they don’t care.

    When this last ditch extortion fails … they have a poor qtr…. it’s only a matter of time.

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