By: Dylan Sikes - AllPennyStocks.com News

Wednesday, August 24, 2016

The Technology sector has edged lower in trading today, tracking losses in the broader market. It has been a mixed year for the Technology sector so far. The sector fell sharply at the start of this year amid a sell-off in risk assets. However, it has bounced back sharply since. Indeed, year-to-date, the Tech sector is now up more than 5%. The sector though is still underperforming the S&P 500, which is up nearly 10% for the year so far.

In the last three months though, the Technology sector has outperformed the broader market. The sector has gained almost 10% in the last three months, compared to a gain of over 5% for the S&P 500. The sector’s gains in the last three months have been driven by some solid earnings from tech companies in the recent earnings season. A sharp recovery in Apple Inc. (NASDAQ:AAPL) from its May lows has also helped the sector get its groove back.

One of the major movers in the technology sector in trading today is SofTech Inc. (OTCQB:SOFT). Based in Lowell, Massachusetts, SofTech is engaged in the development, marketing, distribution and support of computer software solutions that allow companies to manage the lifecycle of their products from conception through design and manufacture, to service and disposal. The company’s service offerings include consulting, training and discrete engineering services.

SOFT shares are soaring in trading today after the company announced that it has agreed to sell its Product Lifecycle Management (“PLM”) technologies, including its ProductCenter and Connector product lines, to Essig Research Inc. in exchange for $3.25 million plus contingent payments based on revenue in the two years immediately following the closing of the transaction. The closing of this asset sale, which is subject to the approval of SofTech’s shareholders and other customary closing conditions, is expected to occur by October 2016. The transaction is not subject to any financing condition.

Joe Mullaney, CEO at SofTech, said that in March 2011, the management team took a controlling equity stake in SofTech with a plan to implement operational improvements, develop new revenue streams, grow the revenue and reduce the debt while seeking opportunities to monetize the existing assets for the benefit of the shareholders. Mullaney further said that the transformative transaction will give the company the liquidity it needs to take advantage of a significant market opportunity with its newly released HomeView technology.

At last check, SOFT shares were trading 32.14% higher at $1.85 on volume of 9,970, which is substantially above the daily average volume.

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