AppFolio Inc. (NASDAQ.APPF) Sell or Short Recommendation – $14.25 PT

December 23 2015 concludes the 180-day lockup period on AppFolio Inc. (NASDAQ:APPF).

(We previewed this event on our IPO Insights platform.)

When the event occurs, its pre-IPO shareholders, directors and executives will have the chance to sell their ~26 million shares.

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The potential for a sudden increase in stock available in the open market may cause a significant decrease in APPF shares, opening a short opportunity for aggressive investors.

Business Summary: Provider of Cloud-based Software for Small Businesses in the Legal and Property Management Industries

Based in Santa Barbara, California, AppFolio offers comprehensive, cloud-based software for a variety of industries, primarily property management and the legal industries. Their programs are designed for small to medium-sized businesses, and currently over 10,000 clients use AppFolio.

Their products include AppFolio Property Manager, a program designed for small to medium-sized property managers with applications such as posting and tracking tenant vacancies, managing maintenance and repairs with vendors, handling the leasing process electronically, and performing accounting and reporting to property owners.

The company’s MyCase program offers management solutions for solo and small law firms by providing time tracking, billing and payments, legal document management, client communication, coordination with other attorneys, and general office administration applications. In addition, AppFolio offers Value+, which provides electronic payment solutions.

The AppFolio platform is designed to be a system that automates essential business processes and enhances engagement between a business and its clients and vendors. The mobile-optimized applications offer a user-friendly interface across a wide array of devices, which allow its clients to work from anywhere at any time.