Joe Kunkle

Small Cap Technology: Five Potential Takeovers

Ultimate Software (ULTI) is perking my interest with suspicious activity. Shares are trading at $28.68, yet a few traders have bought the November $35 calls today pushing the price higher, and in relative large lots for a thin name as 225 trade vs OI of 10. The internet software company trades 51X forward earnings and has a 12.44% short float, 17.3 days to cover. Earnings are set for October 28th. The company supports human resources with its software including talent management software, much like SucessFactors (SFSF) that recently traded to new highs. All time highs on this stock is $40, but this action makes me think someone could know something into earnings, and although I recently highlighted SFSF as a potential small cap Tech takeover target, maybe Ultimate Software is the name I should be looking at.