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The market continues to look frothy and I believe we are overdue for a significant pullback over the next six months. There are a variety of reasons for my outlook, as noted in my previous article. I think high beta stocks that have had large run ups over the last twelve months with stretched valuations are going to take the brunt of this selloff.

The technology sector is a good area to start to look for these vulnerable equities. I did a screen to look for tech companies selling at close to their 52 week highs, have large amounts of insider selling, flat to declining earnings estimates over the last sixty days, as well as high price to sales and price to cash flow ratios. Here are ten that meet these criteria and could take significant hits over the next six months.

  1. Concur Technologies (NASDAQ:CNQR) – This travel expense management company is trading within three percent of its 52 week high. Insiders have sold 500,000 shares with not a single buy in the last six months. The stock is selling at 60 times this year’s projected earnings and over 9.5 times revenues. Consensus Earnings estimates for both 2011 and 2012 have been reduced over last ninety days.
  2. Costar (NASDAQ:CSGP) – Provides information/marketing services to the commercial real estate industry in the United States, the United Kingdom, and France. Insiders have sold over 35% of their shares over the last six months. Costar is trading right at its 52 week high. The stock is selling at 80 times this year’s projected earnings and over 5.5 times revenues. Consensus Earnings estimates for both 2011 and 2012 have been reduced over the last ninety days.
  3. Citrix Systems (NASDAQ:CTXS) – Citrix Systems, Inc. designs, develops, and markets technology solutions that deliver applications on-demand worldwide. Insiders have sold over 53% of their shares over the last six months. Citrix Systems is trading right at its 52 week high. The stock is selling at 32 times this year’s projected earnings and over 7 times revenues. Consensus Earnings estimates for both 2011 and 2012 have remained flat over the last sixty days.
  4. Commvault Systems (NASDAQ:CVLT) – CommVault Systems, Inc., together with its subsidiaries, provides data and information management software applications and related services primarily in North America, Europe, Australia, and Asia. Insiders have sold over 13% of their shares over the last six months. Commvault Systems is trading within three percent of its 52 week high. The stock is selling at 60 times this year’s projected earnings and over 5.5 times revenues. Consensus Earnings estimates for both 2011 and 2012 have remained flat over the last sixty days.
  5. Informatica (NASDAQ:INFA) – InformaticaCorporation provides enterprise data integration and data quality software and services worldwide. Insiders have sold over 59% of their shares over the last six months. Informatica is trading within two percent of its 52 week high. The stock is selling at 40 times this year’s projected earnings and over 7.5 times revenues. Consensus Earnings estimates for both 2011 and 2012 have remained flat over the last sixty days.
  6. OpenTable (NASDAQ:OPEN) – OpenTable, Inc., together with its subsidiaries, provides restaurant reservation solutions in the United States, Canada, Mexico, Europe, and Asia.Insiders have sold over 20% of their shares over the last six months. OpenTable is trading within four percent of its 52 week high. The stock is selling at 95 times this year’s projected earnings and over 24 times revenues. Consensus Earnings estimates for both 2011 and 2012 have remained flat over the last sixty days.
  7. Qlik Technologies (NASDAQ:QLIK) – Qlik Technologies Inc. engages in the development and sale of software solutions that deliver data analysis and reporting solutions.Insiders have sold over 38% of their shares over the last six months. Qlik Technologies is trading within seven percent of its 52 week high. The stock is selling at 80 times this year’s projected earnings and over 9.5 times revenues. Consensus Earnings estimates for both 2011 and 2012 have come down over the last sixty days.
  8. Stratasys (NASDAQ:SSYS) – Stratasys, Inc., together with its subsidiaries, engages in the development, manufacture, and marketing of three dimensional (3D) printing, rapid prototyping (RP), and direct digital manufacturing (DDM) systems primarily in North America, Europe, and the Asia Pacific. Insiders have sold 32% of their shares over the last six months. Stratasys is trading within seven percent of its 52 week high. The stock is selling at 60 times this year’s projected earnings and over 8.5 times revenues. Consensus Earnings estimates for both 2011 and 2012 have remained flat over the last sixty days.
  9. Taleo Corporation (NASDAQ:TLEO) – TaleoCorporation provides on-demand talent management software solutions. Its products include Taleo Enterprise, which supports medium and large enterprises in talent management processes ranging from sourcing, recruiting, and onboarding to performance management, goals management, development planning, succession planning, and compensation. Insiders have sold 29% of their shares over the last six months. Taleo is trading within five percent of its 52 week high. The stock is selling at 37 times this year’s projected earnings and over 8.5 times revenues. Consensus Earnings estimates for both 2011 and 2012 have remained flat over the last sixty days.
  10. Ultimate Software Group (NASDAQ:ULTI) – The Ultimate Software Group, Inc. designs, markets, implements, and supports unified human capital management (HCM) software-as-service (SaaS) solutions to businesses, providing a single source for comprehensive human resources, payroll, and talent management technology. Insiders have sold 20% of their shares over the last six months. ULTI is trading within three percent of its 52 week high. The stock is selling at 76 times this year’s projected earnings and over 6 times revenues. Consensus Earnings estimates for both 2011 and 2012 have remained flat over the last sixty days.
Source: 10 Tech Stocks That Could Be Crushed in the Coming Summer Market Swoon