LogMeIn: Lofty Valuation May Take a Hit

A New York presenter recommends a short on LogMeIn (NASDAQ: LOGM, $37.10). The company provides remote access services to the SMID, enterprise, and consumer markets. LOGM has been able to make some headway with its products, but the free remote access functionality offered by Windows 7 and the threat from much larger competitors like Citrix and Cisco can quickly erode the gains the company has made so far. Its Ignition product for iPads is in intense competition with a number of similar applications, most of which are priced significantly cheaper. The stock has run up on the back of the Ignition launch in April, but now the buzz seems to be fading. Trading at 50 times forward earnings, the presenter believes LOGM is a short at this level.