A Look At 2 Small-Cap Software Companies Roberto Pedone Likes
As usual, independent trader and technical analyst Roberto Pedone recently publicized and explained a few stocks he likes.
First off is Opower Inc (NYSE: OPWR), a small-cap, cloud-based software provider that the analyst has included in his watchlist in several recent occasions because he loves the chart – he assures.
With earnings out of the way now, the company "looks ready to break out over $12 and make a run for that massive gap-down-zone from March that started near $15.50," Pedone said.
He went on to say that he sees a short-squeeze coming if the breakout were to occur, as 19.5 percent of Opower’s 26 million float is sold short.
Support stands around the $11–$11.20 range, "but all we need now is a volume over $12 and then over its gap-down-day high right around $13 a share," Pedone concluded.
eGain Corp (NASDAQ: EGAN) is another stock that has showed up on Pedone’s list several times; the analyst has repeatedly recommended being long.
"It looks like the company’s time is here" as a large private equity firm, Vector Capital Management, started a 9.7 percent position over the last few weeks, the trader said.
"That was the flow for those block trades that got me involved in this stock. I own this already, in case you're a new sub, and it's in the portfolio," he added. "This is another low float play with a small 14 million float, and now EGAN looks ready to fill that gap over $4.20 all the way back to $5."
Pedone concluded that if eGain plays out like A. M. Castle & Co (NYSE: CAS), then the stock could be in for a multi-day move. However, "first let's see EGAN clear $4.20 with volume and get some momo into February's gap-down-zone," he proposes.
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Latest Ratings for OPWR
|May 2016||Avondale Partners||Downgrades||Market Outperform||Market Perform|
|Mar 2016||Pacific Crest||Downgrades||Overweight||Sector Weight|
|Mar 2016||William Blair||Downgrades||Outperform||Market Perform|
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