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A Look At 2 Small-Cap Software Companies Roberto Pedone Likes

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A Look At 2 Small-Cap Software Companies Roberto Pedone Likes
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As usual, independent trader and technical analyst Roberto Pedone recently publicized and explained a few stocks he likes.

Opower

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.

Related Link: Pedone: Twitter, Alibaba Are 'Solid' Setups

eGain

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.

Related Link: 2 Tech Micro-Caps This Expert Is Watching

"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.

Image Credit: Public Domain

Latest Ratings for OPWR

DateFirmActionFromTo
May 2016Avondale PartnersDowngradesMarket OutperformMarket Perform
Mar 2016Pacific CrestDowngradesOverweightSector Weight
Mar 2016William BlairDowngradesOutperformMarket Perform

View More Analyst Ratings for OPWR
View the Latest Analyst Ratings

Posted-In: Roberto Pedone Vector Capital ManagementAnalyst Color Small Cap Analysis Technicals Analyst Ratings Tech Trading Ideas

 

Related Articles (CAS + EGAN)

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