Out Fox The $treet

Small Cap Insight Over the last couple of years numerous software stocks have gone through the grueling transition to the cloud. In most cases, the stocks have suffered as the company takes a hit from the lower current quarter revenue and higher expenses. A perpetual license that previously went directly to revenue during the quarter of the signed contract now becomes a subscription recorded over two to three years of monthly revenue. One software firm that has been impacted is ClickSoftware ( CKSW ) that provides automated mobile workforce management and optimization solutions for such industries as utilities, telecom, and home security. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Bernstein Research provided a compelling list of prospects in the software area that could become merger and acquisition targets. The research firm has provided a list of fast growing software stocks over the years that have a high level of buyouts. Analyst Toni Sacconaghi provides an interesting case for why hardware companies might be interested in these software players. Amazingly Millennial Media is listed as the fast growing stock over more » Disclosure: No positions mentioned. Please review the disclaimer page for more details.