Monday, April 16, 2012

Lebed strikes again with its tout of Broadvision BVSN

Lebed yesterday sent out another tout piece regarding Broadvision (ticker: BVSN).

Lebed continues tout misinformation or overzealous information regarding Broadvision and its indirect competitors.

"CRM's flagship social enterprise product is a free social platform for businesses called 'Chatter', which is competing directly with both Yammer and BVSN's free Clearvale Express!

Yammer recently raised $85 million in venture capital funding in a deal that values the company at approximately $1 billion. Both Yammer and BVSN's Clearvale Express are substantially better than CRM's Chatter!"

Lebed continues to state that because of's growing relevance in enterprise software that Broadvision should be valued higher. What Lebed fails to state is that even within Yammer is a small component of's ecosystem of enterprise software. The main users of Yammer are internal within Salesforce employees. During a recent look at they touted their Yammer to attendees and to their employees however it was not a well known aspect of Yammer. Nor do they intent to make it the main feature of their company.

A point that Lebed and the NIA doesn't point out is how limited Broadvision's user base has become. Salesforce trade shows generally have over 30,000 attendees, even proclaiming more attendees than Oracle. Broadvision continues to bleed its user base with very limited traction. With very limited information besides the number of customers that it enlisted, Broadvision should have an interesting earnings conference call this quarter. Who could forget when Broadvision stated that they have no knowledge of unusual trading activity. The CFO clearly took notice as he filed to sell over 180,000 shares during a recent filing.

If Broadvision were to receive they would have garnered a look from private equity companies since Clearvale has been released since 2009. Where has Broadvision revenue went since 2000? It has continued to face declines in both revenue and profitability, with even the CEO Chen stating that is not in their best interests to seek profitability near term as they seek to gain traction in the marketplace and users.

Compared to every single company that Lebed has stated such as Facebook,, Jive, and recently Instagram, Broadvision has nothing in common in terms of an investor means besides it producing software.

Broadvision's revenue and user base has continued to decline in comparison to the before mentioned companies.

"It means nothing that BVSN's current Clearvale revenues are small. Facebook just acquired Instagram for $1 billion, when it had zero revenues! Every major software company is going to want to break into the enterprise social space in order to take advantage of the 61% annual growth that is ahead! Companies that haven't already developed their own enterprise social platform in recent years, will have no other choice but to acquire one that has already been fully developed! Huge consolidation could soon take place in this space! If just one major acquisition is soon announced, BVSN could explode towards $100 per share overnight, in my opinion!"

Another reason to be cautious. Lebed is touting Broadvision to be similar in some way to Instagram. Instagram has grown its user base from well under one million to over thirty million in a limited amount of time. Where has Broadvision's user base been if you may ask? Consistently down. Just look at all the risks that Broadvision faces in their 10-K filing.

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