With NASDAQ making a steady recovery, some of the
local IT stocks will be again on the buying lists of many adventurous
investors. Encouraging to see that ITC made a good recovery last Friday. For
people who would like to have more choices, there are more bargain buying
opportunities worth considering. Followings are some of my
selections:
Heritage (HGD)
HGD has fallen disgracefully from high of 28c to
the current trading price @10c since it announced its intention to buy and
float E-cademy on NZSE. The shareholders meeting last week has cleared the way
for the listing of E-cademy. Personally I like the future potential for
E-cademy and believe that the sccess of E-cademy floating will benefit
Heritage as a major shareholder. With the share price as low as it is, I
believe that tthere has to be strong upside for this stock in near
future.
Strathmore (SMR)
As a venture capital company similar to ITC, SMR
has been sold down heavily as results of market corrections and the move by
some earlier investor from exiting positions. However, at the current price of
35/36c, SMR has to be considered highly attractively priced in light of SMR's
positioning in the international IT market and the backing of several
high-profiled venture catalysts from overseas.
I also strongly support Frank's selection of FRO
which in many aspects would make a winner in short to medium
term.
Kind regards,
Osbert Sun
(Disclosure of interests: hold shares in HGD, SMR
and FRO).
Disclaimer: The above views represent my personal
opinion and could be considered biased in light of my holdings in these
stocks. I would strongly suggest that anyone who looks for investing in these
stocks should exercise his/her own
judgement!
See IRG research reports
