Coolcat: A Bitstream Buy
01/07/2005 12:00 am EST
Kevin Kennedy, editor of The Coolcat Report , is a specialist in small-cap stocks. He applies a system that screens stocks to find trading patterns that show "characteristics of previous winners." His top pick for 2005 focuses on wireless Web browsing.
"My top pick for 2005 is Bitstream Inc. (BITS NASDAQ), a software development company, which enables customers worldwide to render high-quality text, browse the Web on wireless devices, select from the largest collection of fonts online, and customize documents over the Internet. Its core competencies include font technology, browsing technology, e-commerce, and publishing technology.
"Technically, BITS broke out to new 52-week highs on huge volume Nov. 29 and has since pulled back to find support at its 200-day moving average. It is currently trading in the $2-3 range, well off its Dec. 3 high of $5.30. I think this represents a pretty good entry point. The company has a market cap of only $21 million and a trading float of 8.2 million shares."