By Bert Wilkison
Below is a list of five tech stocks with market caps under $1B that have had noticeably strong moves over the last three months or so. Some of them are thinly traded, but all of them are up big, and for different reasons. Some of you may view these as stocks to buy on considerable pullbacks.
I tend to view them as potential shorts, should the U.S. market decline sharply and if the global economic situation worsens (both are very real possibilities), as many investors and traders will likely take profit on the below names, driving the PPS down, and reinvest those monies in safe-haven equities or just keep it in cash. As always, when shorting, it is best to be first in line (or at least near the front of it).
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Ebix, Inc. (NASDAQ:EBIX) Market Cap: $886.24M
Ebix describes itself as a leading international supplier of on-demand software and e-commerce services to the insurance industry. It claims to provide end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and BPO services to custom software development for all entities involved in the insurance industry.
iGate Corporation (NASDAQ:IGTE) Market Cap: $927.25M
IGate describes itself as a company that heralds the beginning of a new era by bringing together two companies - iGATE and Patni. Between the two, it claims to provide full-spectrum consulting, technology and business process outsourcing and product engineering services.
Its stock currently trades around $16.50 with the average analyst 12-month price target being $20.
MTS Systems Corp. (NASDAQ:MTSC) Market Cap: $708.90M
MTS claims to be a company that has, since 1966, worked side-by-side with engineers in a wide range of industries to solve complex challenges. It states that its high-performance testing and sensing solutions are deployed around the world, enabling precise control of forces and motions as well as real-time feedback that optimizes performance.
Its stock currently trades around $45.30 with the average analyst 12-month price target being $50.
DDi Corp. (NASDAQ:DDIC) Market Cap: $193.13M
DDi describes itself as company that, since 1978, has helped thousands of companies successfully develop more than 100,000 new products. It claims that through expert engineering, relentless problem-solving, superior collaboration, proprietary processes, and state-of-the-art technologies, it manufactures the industry's finest, leading-edge printed circuit boards so that its products perform as they are designed to.
Its stock currently trades around $9.50 with the average analyst 12-month price target being $10.
Black Box Corp. (NASDAQ:BBOX) Market Cap: $559.58M
Black Box is described as a world leader in communications and infrastructure products, as well as solutions for today's leading enterprises. It claims that its global footprint, diverse capabilities, 30-plus-year history, solid financial standing and deep commitment to provide the best technical solutions and support in the industry make it a superior resource for its customers.
Its stock currently trades around $31.50 with the average analyst 12-month price target being $39.
I am not advocating shorting any of the above tickers, but after you dig deeper into the companies' respective fundamentals, you may find justifiable cause to take a long or short position on one or some of them of your own accord.
Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in EBIX over the next 72 hours.