Sector Watch: Application Software, Billionaires Hold Stocks on the Fringe

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The application software industry currently lists a total of 257 stocks, with only seven stocks on a 52-week low. The sector low ratio is 0.03.

Here's a look at three application software companies currently on a 52-week low and still held by a few billionaires. The9 Ltd. ( NCTY ), Merge Healthcare Inc. ( MRGE ) and FAB Universal Corp. ( FU ) are more than 52% off a 52-week high.


Sector Watch: Application Software

The9 Ltd. ( NCTY )

The current NCTY share price is $2.13, or 52.7% off the 52-week high of $4.50.

Down 28% over 12 months, NCTY has a market cap of $49.09 million, and trades at a P/B of 0.60. The company does not pay a dividend.

First incorporated in 1999 in the Cayman Islands, The9 Ltd. is an online game operator and developer in China. The company offers online games including MMORPGs, MMOFPSs, web games, social games, mobile games and TV games that it has licensed or developed. Its other products and services include game operating support, training and advertisement and short message services. In a typical MMORPG or MMOFPS, thousands of players can play the same game at the same time.

Guru Action: In the third quarter of 2013, one sole guru stakeholder, Jim Simons, reduced his position by 2.44%, selling 22,100 shares at an average share price of $3.08 per share, taking a loss of 30.8%.

Over five years of double-digit losing quarters, Simons lost 67% on 984,099 shares bought at an average price of $6.53 per share. Selling, he lost 59% on 100,899 shares at an average price of $5.20 per share.

His current shares of 883,200 represent 3.07% of shares outstanding and 0.01% of his total assets managed.

No insider trades were found.

Historical share pricing, revenue and net income:

1388359413162.png


Merge Healthcare Inc. ( MRGE )

The current MRGE share price is $2.23, or 52.7% off the 52-week high of $4.71.

Down 10% over 12 months, MRGE has a market cap of $209.82 million, and trades at a P/B of 4.74.

Founded in 1987, Merge Healthcare Inc. develops software solutions that facilitate the sharing of images to create a more effective and efficient electronic healthcare experience for patients and physicians. Its solutions are designed to help solve some of the difficult challenges in health information exchange today.

Guru Action: As of the third quarter of 2013, Joel Greenblatt is the sole guru stakeholder and there is recent insider buying.

As of Sept. 30, 2013, Greenblatt reduced his position by 0.43%, selling 990 shares at an average share price of $3.35 per share, taking a loss of 33.4%.

Overall, he lost 26% buying 230,773 shares at an average price of $3.02 per share. Selling, he lost 33% on 990 shares at an average price of $3.35 per share.

His current shares of 229,783 represent 0.25% of shares outstanding.

Historical share pricing, revenue and net income:

1388360031913.png


FAB Universal Corp. ( FU )

The current FU share price is $3.07, or 73.3% off the 52-week high of $11.48.

Down 5% over 12 months, FU has a market cap of $63.87 million, and trades at a P/E of 3.40 and a P/B of 0.42. The company does not pay a dividend.

FAB Universal Corp. offers programmers and businesses software developer kits and distribution licenses. The company has three segments: Digital Media Services, Retail Media Sales and Wholesale Media Distribution. Wizzard Software closed on the acquisition of Digital Entertainment International Ltd. in September 2012, renaming the company with its present name, FAB Universal Corp.

Guru Action: As of the third quarter of 2013, two gurus hold FU shares and there is insider trading.

As of Sept. 30, 2013, Chuck Royce made a new buy of 375,500 shares at an average share price of $4.67, taking an average loss of 34%. His current shares of 375,500 represent 1.8% of shares outstanding.

In the same quarter, Jim Simons made a new buy of 202,109 shares at an average share price of $4.67, taking an average loss of 34%. His current shares of 202,109 represent 0.97% of shares outstanding.

Historical share pricing, revenue and net income:

1388358403827.png


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This article first appeared on GuruFocus .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: FU , MRGE , NCTY

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