Motive: Riding SupportSoft’s Coattails?

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On November 7, 2006, we alerted paid subscribers to an interesting investment opportunity in the shares of Motive, Inc. (MOTV.PK). The stock was then trading at $2.86, and has since moved up to $3.20. The shares may still offer additional upside.

Despite an ongoing accounting investigation and a lack of current
financial statements, we think that Motive (MOTV.PK) is an interesting
enterprise software stock to keep an eye on. As the company files
updated financials in 2007, investors may begin to feel
more comfortable assigning the company a higher valuation, especially
considering the recent increased value in MOTV’s chief competitor,
SupportSoft (SPRT), and our belief that enterprise software shares will
outperform the market in 2007.

Motive, like SupportSoft, provides software that enables broadband
providers to automatically deploy, maintain and support advanced voice,
video and data services. Customers include: RCN, AOL, British Telecom,
and many additional telecom and broadband companies. The company was
founded in 1997, and went public in June 2004 at $10 per share. The
company’s shares have been delisted following an accounting
investigation. The company has yet to file updated financials. But we
expect the restatements to be filed in the coming year.

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