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Top 10 Software Stocks of 2007

2007's list of Top 10 Software Stocks is a mixed bag.  There is an IPO, a few turn-arounds, some SaaS companies and some security companies, but no consistent themes.  To be sure, Software as a Service and appliance-based software remain perhaps the most important software themes right now, but they don't dominate the Top 10.

To qualify for this list a company had to start 2006 with at least $50M in market cap and its main business had to be selling software as a license or a service.  So, without further ado, here are the Top 10 Software Stocks of 2007:

  1. ZIXI
    Price Change: 287% Ticker: ZIXI
    : Pioneer in SaaS-based digitally signed e-mail and prescriptions sees stock soar as revenue growth picks up and speculators target stock.
  2. VM Ware
    Price Change: 193% Ticker:VWW
    :  The software industry's most anticipated IPO of 2007 lived up to its top billing.  VM Ware dominates the rapidly growing virtualization space and the market has rewarded it with a premium price.
  3. Phoenix Technologies
    Price Change: 186% Ticker: PTEC
    Comment: Living up to its name, PTEC rose from its own ashes in 2007 on the backs of successful restructuring and new management team.
  4. BlueCoat Systems
    Price Change
    : 175% Ticker: BCSI
    Comment: BlueCoat saw rapid growth in its core markets of WAN security and acceleration as well as increased adoption of appliance-based solutions by the security market in general.
  5. EBIX Inc.
    Price Change: 162% Ticker: EBIX
    : EBIX accelerated in 2007 as its focus on providing Internet solutions to the insurance industry helped it rapidly grow revenues while avoiding any fallout from the problems hitting the rest of the financial sector.
  6. Innodata Isogen
    Price Change
    : 148% Ticker: INOD
    : Innodata saw revenues accelerate as its "flat earth" approach to content management and production gained favor with customers.
  7. Vasco Data Security
    Price Change: 136% Ticker: VDSI
    : Years of trying to convince banks to deploy authentication software and tokens (as well as a few hackers making some big scores) finally paid off in 2007 as Vasco benefited from a  surge in interest in multi-factor authentication.
  8. Broadvision
    Price Change
    : 130% Ticker: BVSN
    :  After a near death  experience in 2006, Broadvision bounced back as a stable and profitable player in the content management space.
  9. Concur
    Price Change
    : 126% Ticker: CNQR
    :  This SaaS poster child benefited from its domination of online T&E reporting as well as software investor enthusiasm for all things SaaS.
  10. Taleo
    Price Change
    : 118% Ticker: TLEO
    : Taleo saw its stock rise as investors began to recognize the importance of the talent management sector and wanted to own the #1 player.

January 1, 2008 in Software, Stocks | Permalink


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The thoughts and opinions on this blog are mine and mine alone and not affiliated in any way with Inductive Capital LP, San Andreas Capital LLC, or any other company I am involved with. Nothing written in this blog should be considered investment, tax, legal,financial or any other kind of advice. These writings, misinformed as they may be, are just my personal opinions.