Adobe, a fabulous company, is trying to buy Omniture, another fabulous company which I already own. I still believe in OMTR, and the ADBE offer is for straight-up cash (not a cash + shares deal), so I put 3% of my portfolio in ADBE, which has dropped 6% on the news. If/when the offer is finalized in November, I plan to put the cash from the purchase into ADBE, which should complete my targeted 5% stake in ADBE.
I'm buying ADBE now due to the dip from news of the OMTR deal. The P/E is high, but justified by the company's other numbers:
Current ratio: 5.0
ROE: 19%
Total Debt/Equity: 0.1
Gross Margin: 95%
Net Margin: 18%
EBITDA(Earnings Before Interest, Taxes, Depreciation, and Amortization: 26%
Revenue/Employee: $455,600
Revenue Growth, annualized over 5 years: 18%
YOY Revenue Growth: 13%
Much of this information comes from WolframAlpha, a free data search engine which I use and recommend.
