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Top Tech gainers from Friday and what to expect now

|Includes: COOL, HEV, PRO, VASCO Data Security International, Inc. (VDSI)

Following are the four major tech gainers from Friday:

Company Name


% Gain

VASCO Data Security



PROS Holdings



Majesco Entertainment







Here are some of the specifics about these stocks, and what to expect from them going forward:

VDSI was up 8.29% on Friday. VDSI’s business fundamentals are headed in the right direction. In February, company reported its backlog (primarily Banking end market) at $56 mn (FY10 year-end) which was the largest year-end backlog in the company’s history. Going forward Vasco’s end markets (primarily banking) are expected to see continued improvement in demand. Recent acquisition of DigiNotar and opportunities that leverage embedded Intel technologies are expected to incrementally benefit the company going forward. The shares are expected to outperform in near to medium term.

PROS Holdings was up 7.76% on Friday. PROS Holdings, Inc. is a provider of pricing and margin optimization software. Its software products provide customers gain insight into their pricing strategies, identify detrimental pricing practices, scientifically segment their customers and markets to optimize their pricing decision-making and improve their business processes and financial performance. On March 4th, company held its analyst day where it highlighted improving business momentum.  PROS is looking to extend its market opportunity to the SMB market through its SaaS offering in coming quarters. SMB offers 2x market potential as compared to large enterprises. Further, enterprise penetration is still just 3-5% of total Addressable market of $20 bn. This implies a good upside potential for Pros Holdings in the long term. It’s a good growth story to go long on.

Majesco Entertainment was up 7.26% on Friday. The Company provides interactive entertainment products primarily in the United States and Europe. It offers video game software for interactive entertainment hardware platforms and PCs, as well as other digital entertainment products. The stock is up 60% after it reported its earnings on March 8th. The company blew past analyst estimates driven by the sales of its new brand Zumba Fitness. Zumba Fitness was released on three major gaming platforms and it sold over one million units from its launch date through the end of F1Q.  The company raised FY:11 guidance for revenue to $100 - 110 million from $85 – 90 million, and for EPS to $0.20 – 0.25 from $0.06 – 0.10.  Zumba now is the second mega-brand and it will help in diversifying the sales base and leverage expenses. Although stock has gone up significantly, the fundamentals still are headed in the right direction and one can use any pullback to go long on the stock.

Ener1 was up 7% on Friday. Ener1 reported 4Q10 results of $33.1mn/($0.08) vs. consensus estimates of and $24.5mn/($0.10). Revenue upside was a result of the recognition of $11.3mn in grid revenue. EV end market continues to struggle and battery shipments to Think Global was halted in January due to excess inventory at Think. Think is company’s main EV customer and 48% owned subsidiary of Ener1. Although, improved Grid revenues will offset EV revenues to some extent going forward and margins in Grid business is better than EV business, Ener1’s EBITDA breakeven inflection point is likely pushed-out into mid-2012 due to sales issues at Think. Investors are suggested to book profit on any rise in this one.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.