Internet Software Services

For Internet Software Services, the following are my considerations:

1. Market capitalization should be above US$ 1 Billion
2. PE should be lesser than 105 ( 70.40 x 1.5). This is quite high.
3. ROE should be greater than 3.3%. The average ROE of ISS companies is quite low.
4. Debt to equity should be lesser than 0.58 (0.29 x 2)
5. PB should be lesser than 30 (20.27 x 1.5)

The following companies qualify and were tested along technical lines:

GIB is trending downwards
SYMC PE is 39. Perfect buying point was on April 2008
SINA and OTEX are both trending downwards.
DRIV (Digital River) - prepare to buy on trend reversal coming up.
RNWK (Real Networks) - a little too late to buy. Buy cautiously.
GIGM (Giga Media) - Prepare to buy.