The month of May is always a difficult month in the stock market, and May 2012 is not an exception. The DOW and NASDAQ logged the worst monthly performance, with the DOW and S&P 500 dropping more than 6% in May 2012. NASDAQ composite index fell 10.02 points to 2,827.34, and had its worst month in the past two years. Fears about the U.S. economy, job reports, eurozone debt crisis, as well as Spain and Greece are some of the reasons for the negative performance in May 2012. However, there are some stocks that performed well during this month in the Technology sector.
In this article, I will cover those top performers in the Technology sector during the month of May 2012. These stocks are screened based on the following criteria:
- Security Type: Common Stock
- Sector: Technology
- Market Cap: Greater than 200 million
- Stock Price: Greater than $1.00
- MTD Performance (May 1 to May 31): Greater than 25%
The following chart provides the top performers of Technology stocks for the month of May, 2012:
1. Synacor Inc (SYNC): Synacor, Inc. provides authentication and aggregation solutions for delivery of online content and services in the United States, the United Kingdom, and the Netherlands.
On May 1, 2012, Synacor announced that it has acquired Carbyn, the HTML5 Platform that delivers a unified experience for apps across Net-connected devices including smartphones, tablets, laptops, and connected TVs. On May 18, 2012 Merrill Lynch upgraded Synacor from UNDERPERFORM to NEUTRAL.
Synacor has a market cap of $305.72M. Synacor is currently trading around $11.95 with a 52 week range of $4.75 to $15.00. The stock has 77.31% price performance for the month May 2012.
2. Standard Microsystems Corporation (SMSC): Standard Microsystems Corporation designs and sells a range of silicon-based integrated circuits that utilize analog and mixed-signal technologies worldwide.
On May 2, 2012, Microchip Technology Inc and Standard Microsystems Corporation announced that Microchip has signed a definitive agreement to acquire Standard Microsystems Corporation for $37.00 per share in cash.
SMSC has a market cap of $820.28M. SMSC is currently trading around $36.60 with a 52 week range of $17.98 to $36.88. The stock has 38.37% price performance for the month May 2012.
3. LeCROY Corporation (LCRY): LeCroy Corporation, together with its subsidiaries, develops, manufactures, sells, and licenses oscilloscopes and communication protocol analyzers in the Americas, Europe, the Middle East, and the Asia Pacific.
On May 29, 2012, Teledyne Technologies Inc and LeCroy Corp jointly announced that they have entered into a definitive agreement that provides for the merger of LeCroy Corp with a wholly owned subsidiary of Teledyne. Pursuant to the transaction, Teledyne will acquire all of the outstanding common shares of LeCroy for $14.30 per share, payable in cash.
LeCROY has a market cap of $238.22M. LeCROY is currently trading around $14.16 with a 52 week range of $6.52 to $14.33. The stock has 37.12% price performance for the month May 2012.
4. VirnetX Holding Corporation (VHC): VirnetX Holding Corporation develops software and technology solutions for securing real-time communications over the Internet.
On May 3, 2012, VirnetX Holding Corp and Aastra USA, Inc announced that they signed a Patent License Agreement (the "Agreement"). On May 29, 2012, Gilford Securities initiated coverage on VirnetX Holding with a BUY rating and set the price target as $65.00.
VirnetX Holding Corp has a market cap of $1.63B. VirnetX Holding Corp is currently trading around $32.01 with a 52 week range of $11.01 to $41.77. The stock has 34.21% price performance for the month of May 2012.
5. Rosetta Stone Inc (RST): Rosetta Stone Inc., together with its subsidiaries, provides technology-based language-learning solutions in the United States and internationally.
On May 8, 2012, Rosetta Stone reported its financial results for the first quarter 2012 with 22% revenue growth. Rosetta Stone has a market cap of $292.72M. Rosetta Stone is currently trading around $13.97 with a 52 week range of $6.55 to $16.15. The stock has 31.92% price performance for the month May 2012.
6. Sierra Wireless, Inc (SWIR): Sierra Wireless, Inc., together with its subsidiaries, provides wireless solutions for the machine-to-machine (M2M) and mobile computing markets.
On May 3, 2012, Sierra Wireless reported its first quarter 2012 results with revenue growth and improved gross margin. On May 9, 2012, Raymond James upgraded Sierra Wireless from Market PERFORM to OUTPERFORM with a price target of $11.25. On May 14, 2012, Canaccord Genuity reiterated a BUY rating on Sierra Wireless with a price target of $12.00. Sierra Wireless has a market cap of $270.46M. Sierra Wireless is currently trading around $8.75 with a 52 week range of $6.02 to $12.14. The stock has 31.85% price performance for the month May 2012.
7. DigitalGlobe Inc (DGI): DigitalGlobe, Inc. provides commercial earth imagery products and information services worldwide. It collects imagery products and services through its QuickBird, WorldView-1, and WorldView-2 satellites, as well as aerial and satellite imagery from third party suppliers.
On May 4, 2012, GeoEye Inc announced that it is proposing to acquire DigitalGlobe, Inc. The proposed transaction would give DigitalGlobe shareholders $17.00 per share in total consideration, payable $8.50 per share in cash and $8.50 in GeoEye stock, or 0.3537 shares of GeoEye stock for each share of DigitalGlobe stock. This price represents a 26% premium to DigitalGlobe's closing share price on May 3, 2012.
On May 6, 2012, DigitalGlobe announced that its Board of Directors reviewed GeoEye's unsolicited acquisition proposal and unanimously determined that it substantially undervalues the company in relation to DigitalGlobe's standalone business and financial prospects, and is not in the best interests of the company's stockholders. In addition, the board determined that GeoEye's proposal does not adequately recognize DigitalGlobe's superior track record of financial and operating performance.
DigitalGlobe has a market cap of $717.74M. DigitalGlobe is currently trading around $15.40 with a 52 week range of $11.61 to $27.42. The stock has 31.69% price performance for the month May 2012.
8. Spreadtrum Communications, Inc (SPRD): Spreadtrum Communications, Inc., a fabless semiconductor company, engages in the design, development, and marketing of mobile chipset platforms for smartphones, feature phones, and other consumer electronics products in the People's Republic of China and internationally.
On May 3, 2012, Spreadtrum Communications reported its unaudited financial results for the first quarter ended March 31, 2012 and issues second quarter 2012 revenue guidance above Analysts' estimates. After this news, the stock price went up from $13.43 to $15.77. On May 8, 2012, Canaccord Genuity reiterated its BUY rating on this stock.
Spreadtrum Communications has a market cap of $784.32M. It is currently trading around $17.04 with a 52 week range of $8.59 to $29.98. The stock has 29.71% price performance for the month May 2012.
9. Ellie Mae Inc (ELLI): Ellie Mae, Inc., together with its subsidiaries, provides business automation software for the mortgage industry in the United States.
On May 2, 2012, Ellie Mae issued second quarter 2012 guidance above analysts' estimates and also raised the fiscal year 2012 guidance. Following the news, the stock price went up from $12.36 to $15.48.
Ellie Mae has a market cap of $337.93M. Ellie Mae is currently trading around $15.65 with a 52 week range of $3.46 to $16.69. The stock has 25.39% price performance for the month May 2012.
Sources: Some of the data is taken from Google Finance, Fidelity and investor sites.
Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.