I'll throw Rogue Wave (RWAV, $6) into the hat. The fundamentals are very solid, quarterly sales are rising, and the company is profitable. Like many growth companies, one-time charges tend to make the EPS unpredictable. The business is object-oriented software for C++ and Java. RWAV sells "libraries" to application developers that cut the time it takes to develop an application significantly. A company can have its programmers re-invent the wheel, or license an RWAV library. Here's the kicker, which has slipped off the Wall St. radar screen. RWAV funded developement of HotData, which is going to be an IPO someday, and probably a good one. TL Ventures came in with second round financing for HotData. TLV is associated with Safeguard Scientifics, one of the most experienced incubator companies listed on Wall St. (SFE). HotData mines databases - a subject we talked about on the TAVA thread. HotData has just started to commercialize its product. The link to see what HotData does is at
hotdata.com
RWAV is at the lower end of a volatile trading range. Options trade on 3 different exchanges, giving a chance to capture covered call income and occasionally exploit inefficiencies in the bid-asks. I've sold RWAV calls at times with implied volatilities in the 90%-100% range, not quite as good as the TAVA premiums often were, but rich by most standards if you're looking for some income while you wait. RWAV has a lot of the volatile price action TAVA had, and a loosely defined trading range between $5-$15, or $6-$10 if you trade more frequently. |
