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Marc Chaikin
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After more than 40 years on Wall Street, Marc Chaikin founded Chaikin Analytics LLC in 2009 to deliver proven stock analytics to financial service professionals and individual investors. With the Chaikin Power Gauge, an alpha-generating quantitative model as its centerpiece, Chaikin Analytics... More
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  • Three Software Stocks to Watch Gaining Momentum Due to Consistent Earnings 1 comment
    Nov 15, 2010 8:03 PM | about stocks: CHKP, ININ, BMC

    This week, we screened our database of 5000 stocks to identify these three stocks in the software industry with a bullish Chaikin Power Gauge rating and a strong momentum driven by earnings in the recent quarters. These companies are trading near their 52-week highs and are profitable with lots of cash on hand. Given their high ROI and consistent performance, we believe these stocks will continue their upward trend in 2011 as the companies begin to invest in their technological upgrades

    1. Check Point Software Technologies Ltd (NASDAQ:CHKP): Check Point boasts an excellent balance sheet with lots of cash on hand and zero debt. High profit margins validate our belief that low valuations on the company’s fundamentals will continue. The company has been generating consistent earnings, which has led to upward revisions by analysts and experts. Check Point also shows strong price strength vs. stocks in its industry and vs. the broader market

    2. Interactive Intelligence Inc (NASDAQ:ININ): Strong cash flows, no debt and a high ROI bring our attention to this lesser known company which has a bullish Chaikin Power Gauge rating and consistent earnings growth. ININ shows very bullish price/volume activity and shows a strong Chaikin price trend and volume trend. Analysts are raising their estimates to reflect the consistent upward earnings trend. The company also has strong price strength vs. its industry and vs. the broader market. A relatively high short interest indicates that ININ can rise significantly and unexpectedly with any positive news from the company serving as a catalyst.

    3. BMC Software Inc (NASDAQ:BMC): BMC Software generates a high ROI with consistent earnings leading analysts to raise their expectations for the stock towards the end of the year. The stock has a relatively high price/volume activity and strong price strength vs. industry and market. The company has a great balance sheet with lots of cash and very little debt. High profit margins will continue to generate even more positive cash flows.

    We recommend you perform your due diligence before making any investing decisions; however we believe we have successfully narrowed the software industry stocks to these three to consider researching further and investing in when the opportunity presents if you are looking to invest in this sector as a part of your plan to diversify.

    Disclosure: No positions

    Stocks: CHKP, ININ, BMC
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  • Gino Verza
    , contributor
    Comments (429) | Send Message
    Thank you for sharing.


    I agree with your assessment of ININ. It is a great company; an efficient user of capital with strong balance sheet, attractive ROIC, and accelerating growth.


    Unfortunately, the stock is ahead of itself. I would like to buy at a much lower stock price.


    Best wishes.
    15 Nov 2010, 10:46 PM Reply Like
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