Seeing Value In Software:
M&A activity within software is moving along at a nice pace in 2022. Management teams doing their due diligence must be seeing value. Now, are they seeing real future value or current bargains is the big question? I still remember years back before Cathie Wood achieved superstardom being frustrated seeing names doubling within her healthcare portfolio on buyouts that she thought would be worth 10X over the next several years. But some recent names being bought include KNBE FORG PING and ZEN, all of which were taken out with nice premiums but were a lot higher prior to the purchase. Does that mean one should be focusing on software inside technology? Number one never ever invest in a name with the hope of a takeover. Look for names with strong technicals and fundamentals and build your watch list from there. Two standout names that are REPORTING in the next couple of sessions in DV and AZPN. They for the most part shrugged off tech weakness in 2022, a very good sign, and I would wait until AFTER the numbers to place your trades.