Three Software Companies Praised for Solid Growth Prospects
Richard Parower, managing director at J&W Seligman and portfolio manager of the Seligman Global Technology Fund, told CNBC’s “Morning Call” that he likes three software companies with solid growth prospects.
Parower's picks: McAfee, Business Objects and Oracle.
McAfee is "a bit earlier with their new security suite,” Parower said Monday. “[It] gives more protection to both consumers and corporations. It has a bit higher selling price, but it’s a good way for them to 'up-sell' their installed base. They’ve come out with some new products that protect networks.”
He said Business Objects, active in business intelligence and applications, has room to grow.
“If you take the cash off the balance sheet, it’s trading at a high-teens multiple on this year’s earnings,” Parower said. “We think they can grow their earnings up in the high teens, so we think there’s a lot more value there.”
He praises Oracle for being active in database and applications software.