Software a Relative Outperformer, Says BCA Research

Our friends at BCA Research were kind enough yesterday to slip the following software musings over the transom at TTD, and I nearly fell off my chair: Buy software stocks! As the folks at BCA see it, “The corporate sector, now more than ever, is trying to squeeze every bit of productivity out of resources.” Well, sure. So? “Productivity-enhancing software firms are the prime beneficiaries. During an economic downturn, overall IT budgets drop (expensive hardware refresh cycles get postponed), however, software-related outlays remain resilient.” Well, I guess that makes sense. Better yet, says BCA, “Investors need not pay up for these attractive defensive characteristics as relative price-to-earnings multiples are close to cyclical lows.”

Read the rest of this post


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »