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Steve Harmon Report - Be A Square Or Box?

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These two stocks caught my eye for one reason: targets?
 

Steve Harmon

June 21 · Issue #6 · View online
Beyond the hype, inside the world of venture capital, tech, stocks and trends, from Silicon Valley to Shanghai, from veteran investor and entrepreneur Steve Harmon - followed by many leaders in finance and tech, see more: http://steveharmon.com

These two stocks caught my eye for one reason: targets?

Well, well, well...what do we have here?
Take a gander at the above stock box. What pops out to me are two companies that have significant marketshare but what I consider relatively “low” valuations in relation to their “take out” value.
Take out is not the British version of “to go” order but rather the acquisition premium I think both could command if a competitive bidding situation arises.
Which two are targets? I believe Box (BOX) and Square (SQ) could be on a bigger company’s shopping list. Why? Simple math to market. In other words, let’s say an Amazon, Salesforce, Oracle or some other whodaddy wanted to get into the payment space quickly and cheaply (for them).
Square does that. An all-stock offer barely dilutes any of the above and the net gain in upside looks large to me.
Now for Box (BOX). We’ve all heard of cloud storage and Google Drive, iCloud, blah blah blah. Who cares? According to Box “more than 41 million users and 74,000 businesses—including 59% of the Fortune 500—trust Box to manage content in the cloud.”
BOX market cap sits at about $2.5 billion. I think that’s more than Elon Musk paid for his Iron Man suit. Seriously, IBM could snatch this up as an aperitif (what’s that? click here for language training, I did). Mainly the word sounded right. Cuz sometimes stimulating the appetite is what enterprise companies do.
Time for a video break:
20 years of the Internet and it all comes down to this
Update: appleseed
appleseed.works – seed investing never looked so sweet
A rather mathematical approach wouldn't you say my dear Watson? Indeed.
‘Nuff said.
Best,
Steve
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