Open Text Corporation (Nasdaq: OTEX): Stock of the Day

by David Fessler, Advisory Panelist

One Stock to Watch in this Little-Known Software Sector

The swine flu virus has a number of biotech stocks moving upwards, and pork producers moving downwards. Unless this turns into a full-blown pandemic, both of these represent a typical knee-jerk over-reaction by the markets, fueled by silly misinformation, hyped by the mainstream news media.

There is another sector, however that is on fire at the moment. And it has nothing to do with pandemics. This little-known software sector has companies like Ebix, Inc. (Nasdaq:EBIX), Smith Micro Software (Nasdaq:SMSI), Telecommunications Systems (Nasdaq:TSYS) and BMC Software (NYSE:BMC).

But Open Text Corporation (Nasdaq:OTEX) is the one to watch, and lately it’s been on the move. Open Text’s sole product is enterprise content management (ECM) software.

So what exactly is ECM software? It helps companies manage all forms of documentation, including traditional ones like office documents, images, drawings and graphics, as well as electronic content like web pages, email and video.

It also manages version revisions for office software as well as regulatory compliance requirements. Not believing that “one size fits all”, the company has numerous solutions, each tailored to a specific industry.

Now the company has set its sights on the broadcast industry, and will be demonstrating its “Vizible” break-through 3D interface this week at the 2009 National Association of Broadcasters show.

This exciting new product will give broadcasters a whole new method for delivering rich media content in a way that eliminates sifting through the plethora of content on the web.

“We have reached the point where two dimensions are not enough for people to make sense of all the information they need to process,” remarked Scott Bowen, President of Open Text’s Digital Media Group.

“The Vizible interface provides a revolutionary new way to deliver content for a more satisfying and immersive user experience. And, all this will be supported by the strength of our industry leading content and digital media management solutions.”

Shares are up nearly 11% since the beginning of the year, and with the ongoing transition from print media to digital on-line sources, companies like those mentioned above stand to profit, and buck the current economic malaise.

Good investing,

Dave Fessler

Comments

By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.

Check out our selection of daily investment research: