August 4, 2011

SpeculatingStocks.com Stock Pick: Keynote Systems, Inc. (KEYN)

Stock Price: $24.47

Keynote Systems, Inc. is a global leader in Internet and mobile cloud monitoring. Keynote provides companies with solutions for continuously improving the online experience.

KEYN is in the hot "cloud" space and also in mobile. These are two of the hottest spaces out there right now. KEYN's CEO has noted that their early and continued investments in mobile and Internet cloud technology is resonating with KEYN's customers' need to monitor and test the performance of their growing online assets.

KEYN reported earnings on July 26th with net income coming in at $4.2 million and record revenue of $26.6 million. KEYN has approximately $91.5 million in cash, cash equivalents, and short-term investments on its balance sheet.

KEYN only has around 16.5 million shares outstanding. KEYN is trading at a market cap of around $403 million. We believe that KEYN can become a billion dollar company.

KEYN has uptrended throughout the past year and we believe that KEYN is solid enough to continue to do so. We noticed that it also has been drawing the attention of investors more so than usual the past couple of weeks.

Speculative Score: 1

1 Being the Least Speculative and Most Confident

10 Being the Most Speculative and Possibly the Most Risky