Its software suite of products acts as a watch dog of sorts, snooping for those trying to break into computer networks. Some of its 1,500 customers include Charles Schwab, Microsoft, HP, Intel, Merrill Lynch, Lockheed Martin, NASA, and Price Waterhouse to name a few. Underwriters for the IPO were led by Goldman Sachs which brought it public at 15x, which we think is about where ISSX ought to trade. At 20x revenue we think Wall Street could perhaps sleep a little sounder. Don't get us wrong.
Security is vital.
And ISS Group is hot, IPO notwithstanding. We'd just like to see a little more revenue, some positive earnings, and as much caution applied to valuation by investors as firms like this do to hacker-proofing networks.