Concur Technologies (CNQR)
By Timothy Lutts, Chief Investment Strategist and Editor of Cabot Stock of the Month
From Cabot Wealth Advisory 6/11/12 Sign up for free Cabot Wealth Advisory e-newsletter
Concur Technologies (CNQR) has a great chart, indicating that growing numbers of investors are becoming aware of the stock, learning about the company’s business and investing in it because they think the future is bright.
If you’re a user, I don’t need to tell you about it.
If you’re a user, you may already be an investor in the company!
But if you’re not, here’s what you should know.
In 19 years, Concur has grown to become the world’s leading provider of integrated travel and expense management solutions.
It has over 15,000 corporate clients with more than 15 million individual users in more than 100 countries.
And it’s still growing at a good clip, with revenues up 28% in its fiscal second quarter.
That’s all good, but last week the story got even better.
Last week, the company announced it had been selected by the U.S. General Services Administration (GSA) to manage online travel booking, authorizations and voucher processing for all Federal Agencies. That’s huge news, given that the GSA has about 3 million civilian employees.
The stock spiked higher on big volume on the news, and broke out to a new high two days later as the broad market (thanks to Spain) rallied to provide a supportive environment.
That means the stock moves to near the top of my watch list. If it does well, I may write about it again.
But if you really want to be assured of continuing coverage of the stock for as long as it remains attractive, I recommend you take a look at Cabot Top Ten Trader, which recommended the stock a month ago and continues to follow it. For more, click here.
From Cabot Wealth Advisory, 9/18/08 Sign up for free Cabot Wealth Advisory e-newsletter
My stock idea is, very simply, the #1 stock on my watch list right now. The company sports most of the characteristics of past leaders—fast sales and earnings growth, healthy profit margins, a unique position in a mass market, and a huge opportunity for growth going forward.
It's Concur Technologies (CNQR), a relatively small ($193 million in revenue) company whose software allows companies to save 50% to 80% on travel-related costs. The idea is simple—it's computerizing and automating many of the aspects of booking, tracking and reporting travel expenses. No more paper-based expense reports!
And the service is offered "on-demand," which simply means that Concur hosts everything on its own servers, so all customers have to do is log-in online, and get to work. The overall attraction (cost savings plus ease of use) is so great that renewal rates have been in the 97%+ range for the past six years.
The company's been doing great for a while—sales and earnings are rising at a 60% to 100% clip—but business should get even better next year. Why? Because American Express, once a competitor, has thrown in the towel, bought 13% of Concur's shares, and is beginning to exclusively push Concur's software to all its clients.
Considering that Concur has just 7,000 or so clients, versus a potential market of more than 600,000 in the U.S. (according to management), you can see how big this business could get. The market has also been compared to the early stages of the outsourced payroll market-think Paychex, and ADP, both of which enjoyed years of growth.
Best of all, the stock is acting like a champ. It broke out to new peaks in August, and is still above those peaks now, despite the horrid market. It's positioning itself to be a leader of the next upturn...but I still need to see the market itself find a bottom before buying in.
Editors Note: As editor of Cabot Market Letter—Cabot's flagship product, published since 1970—Michael Cintolo has helped subscribers beat the bull market of 2007, while also avoiding the worst of the bear market during the last 11 months. The result has been a Model Portfolio (which focuses on young, dynamic growth stocks) that has bested the S&P 500 by an amazing 35%...just since the start of 2007. Looking ahead, Mike believes we're in the later innings of this bear market, and thus, he's readying his shopping list with stocks like Concur Technologies, preparing to jump on the leaders of the next big bull move. If you want top performance in both bull and bear markets, and if you want to know the leaders of the next advance before they shoot higher, give Cabot Market Letter a try. Click here for more information.
Vice President of Investments and Editor of Cabot Market Letter and Cabot Top Ten Weekly
A growth stock and market timing expert, Michael Cintolo is editor of Cabot Market Letter and Cabot Top Ten Weekly. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides that has helped Cabot place among the top handful of market-timing newsletters numerous times.
|Concur Technologies (CNQR)
18400 NE Union Hill Road
Redmond, Washington 98052 U.S.A.
|Index Membership: S&P 600 SmallCap, S&P 1500 Super Comp
Industry: Technical & System Software
Full Time Employees: 1,600
9/18/08 Concur Technologies (CNQR): Software that allows companies to save on travel costs