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Software industry

SoftQuad International Inc. Rides the Information Highway to Success

Strategic Insights

— 2 min read

The "information superhighway" hype has greatly benefited Toronto-based software developer SoftQuad International Inc., which provides products used by companies like Dow Jones, General Motors, and Boeing to publish documents electronically. Recent deals and favourable magazine coverage have boosted interest in its products, leading to a near tripling of its share price in recent weeks. SoftQuad's software deals with the computer standard SGML, allowing documents to be stored, transmitted, and read by any kind of computer. Its document viewer, Panorama, has been included with Mosaic, a Web browser available free of charge, and has also been bundled with a commercial version of Mosaic produced by Spyglass Inc.

Key Takeaways:

  • SoftQuad International Inc.'s share price has nearly tripled in recent weeks, closing at $1.95, up 17 cents from January's level of about 65 cents.
  • The company's software deals with the computer standard SGML, allowing documents to be stored, transmitted, and read by any kind of computer.
  • SoftQuad's document viewer, Panorama, has been included with Mosaic, a Web browser available free of charge, and has also been bundled with a commercial version of Mosaic produced by Spyglass Inc.
  • More than 75,000 users downloaded HoTMetaL Pro in December alone, indicating overwhelming demand for SoftQuad's software.
  • Analysts have differing opinions on SoftQuad's future performance, with John Stroud of Yorkton Securities Inc. predicting the company may make $10-million this year and the stock could rise to between $3 and $4 a share.
  • Marleau Lemire Inc. analyst Alex Baluta is less optimistic, citing competition from software behemoths like Microsoft and the company's need to amortize goodwill.

Statistics:

  • SoftQuad International Inc.'s share price increased by near 300% in recent weeks.
  • The volume of trading on the Toronto Stock Exchange was greater than during the previous two weeks combined on at least two days last month.
  • More than 75,000 users downloaded HoTMetaL Pro in December alone.
  • Analyst John Stroud predicts SoftQuad may make $10-million this year.
  • The stock price could rise to between $3 and $4 a share, according to Stroud.

Sources:

  • "All the popular attention - some might say hype - that has built up about the "information superhighway" over the past year has been a boon to little-known Toronto-based software developer SoftQuad International Inc." - MATHEW INGRAM Investment Reporter (not available due to lack of proper citation)
  • SoftQuad International Inc. cited in article by MATHEW INGRAM Investment Reporter
  • PC Magazine cited in article by MATHEW INGRAM Investment Reporter

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