Software and programming is currently one of the top
performing industries, as there are 92 companies (out of 213 companies
that are generally tracked) that have a relative strength at or above
80. However, our focus will be to pick seven stocks in the prepackaged
software industry.
Yesterday, out of the 213
Software & Programming stocks, the prices of 127 stocks increased,
77 stocks decreased and nine remained unchanged. So the breadth was
pretty favorable. Out of the 122 prepackaged software stocks, we will
pick seven stocks that can be fairly termed 'bullish' in the next three
to twelve months.
Filtering Process
Relative
Strength Index (RSI) is one of the popularly used technical indicators.
The RSI is most typically used on a 14 day time frame, measured on a
scale from 0 to 100, with high and low levels marked at 70 and 30,
respectively. Shorter or longer time frames are used for alternately
shorter or longer outlooks. More extreme high and low levels—80 and 20,
or 90 and 10—occur less frequently but indicate stronger momentum. I
will eliminate those stocks whose RSI is below 70. We are now left with
16 stocks.
| Symbol | | Weighted
Alpha | Last | Rel Str | Avg Vol | YTD
Percent | 52 Week
High | 53 Week
Low |
| MSTR | | 134.6
| 167.73
| 76.83%
| 140515
| 96.24%
| 168.55
| 72.42
|
| TIBX | | 126.9
| 30.47
| 71.96%
| 4679855
| 54.59%
| 30.75
| 11.83
|
| INFA | | 124.5
| 60.86
| 72.07%
| 1149625
| 38.22%
| 61.12
| 23.59
|
| CCOI | | 117.2
| 17.26
| 80.97%
| 352645
| 22.07%
| 17.31
| 6.98
|
| CVLT | | 109.4
| 46.6
| 76.67%
| 538565
| 62.82%
| 46.74
| 17.25
|
| LPSN | | 108.5
| 14.71
| 83.64%
| 514195
| 30.18%
| 14.89
| 6.05
|
| VOCS | | 104.2
| 31.81
| 78.92%
| 182080
| 15.00%
| 32.17
| 13.21
|
| AMSWA | | 87.7
| 8.6
| 73.87%
| 108210
| 28.54%
| 8.9
| 4.29
|
| SXCI | | 81.2
| 63.62
| 75.02%
| 323300
| 48.44%
| 64.73
| 30.69
|
| CHKP | | 80.4
| 57.65
| 70.81%
| 1564585
| 24.62%
| 57.91
| 28.9
|
| CYOU | | 78
| 45.32
| 70.01%
| 311380
| 58.96%
| 47.25
| 24.85
|
| ACIW | | 74.3
| 34.4
| 72.84%
| 180010
| 28.02%
| 34.85
| 18.09
|
| TYL | | 72.8
| 27.2
| 73.40%
| 238180
| 31.02%
| 27.24
| 15
|
| KNM | | 58.9
| 24.4
| 74.11%
| 5665
| 14.61%
| 24.4
| 15.14
|
| BIRT | | 22
| 5.96
| 70.66%
| 298845
| 4.56%
| 6.06
| 3.95
|
Fifty
two week consensus target price is the next filtering criteria. I will eliminate those stocks whose 52
week consensus target price is less than the last traded price. Now we are left with nine stocks - TIBX, VOCS, AMSWA, SXCI, CHKP, CYOU, ACIW, TYL, and BIRT.
The final criterion is analysts' recommendation.
| Strong Buy | Buy | Hold | Underperform | Sell |
TIBX | 4
| 1
| 4
| 0
| 0
|
VOCS | 4
| 2
| 4
| 0
| 0
|
AMSWA | 1
| 0
| 0
| 0
| 0
|
SXCI | 10
| 3
| 10
| 0
| 0
|
CHKP | 12
| 5
| 11
| 0
| 0
|
CYOU | 9
| 0
| 1
| 1
| 0
|
ACIW | 5
| 1
| 1
| 0
| 0
|
TYL | 1
| 0
| 4
| 0
| 0
|
BIRT | 1
| 3
| 1
| 0
| 0
|
CYOU is eliminated as one of the analysts rates it as underperform. AMSWA is also eliminated as only one analyst rates it.
So, the final seven stocks are: TIBX, VOCS, SXCI, CHKP, ACIW, TYL, and BIRT.