Commtouch (CTCH), the email defense company, has started the summer with a bang. The stock has surged 35% over the last three weeks, on the prospects of continued strong growth, and Google’s (GOOG) purchase of the privately held email security firm Postini for $625 million last week. Commtouch develops, and provides proprietary anti-spam solutions to combat over 180 billion email messages per day, 85% of which are spam.
Comverse Technology (CMVT), is a stock that I have written a lot about, mostly in terms of it fitting the bill as an attractive private equity target. Last week, there were media reports that the company was looking to be acquired, and has hired Deutsche Bank to investigate M&A possibilities. Although the stock is up 10% on the news, I view the company being worth at least $28 in a takeover, and that would be a steal (sorry Kobi Alexander, I couldn’t resist).
Retalix (RTLX), is a company that automates and synchronizes retail, distribution, and supply chain operations for stores, headquarters, and warehouses. It has continued to sign deals, especially in China, and recently re-affirmed its numbers for 2007. The recent deal with HomeBuy, an operator of 60 stores in Shanghai and eastern China, and plans to open more than 400 stores in the next five years exhibits the dynamic growth of its China business. Coupled with the persistent rumors of an SAP (SAP) bid, and Retalix trading under $20, it looks like a really cheap buy right now, and investors who have some patience may be richly rewarded.
Disclosure: The author’s fund is long CTCH, CMVT.pk, and RTLX as of June 13, 2007. He doesn’t own any other positions in companies mentioned in this article.
CMVT.PK 1-yr chart:
CTCH 1-yr chart:
RTLX 1-yr chart: