Open Text: Maybe Open Season
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Open Text (OTEX) is the largest independent provider of "enterprise content management" software, which lets users collaborate, share, store, and retrieve info on the Web. The company's allure is that it boasts some major tech partners, including SAP (SAP), Microsoft (MSFT), and Oracle (ORCL).
Open Text stock, now at 37.41, is down from its 52-week high of 41 on Oct. 19, but many fans believe it will reach 45 in a year. "It is one of our best stock investment ideas and a top holding, which we expect will continue to gain market share," says Richard Parower of investment firm Seligman Investments. He predicts Open Text will be a likely takeover target for one of its partners.