We had also cautioned on technology companies built on trading business rather than on building own software on February 14, 2017 (“Are your IT stock fortunes built on purchased software?”). Luckily, many quality players in the mid-sized IT segment saw their market caps rising as high as 70% to 144% since April 2016. This second category of stocks once again highlights the need for the retail investors to stick to a few mantras for protection of their equity wealth in the stock markets. Many mid-sized IT companies have lost valuation comforts. Though some of these mid-sized IT companies have seen a few merger & acquisitions (M&As), large domestic IT firms largely stayed away from acquisition of mid-sized IT companies for inorganic growth.

Source: dna May 15, 2018 00:11 UTC