Has P.A.W Capital Found Some Hidden Gems With These 5 Under-the-Radar Tech Stocks?

Web.com Group Inc. (NASDAQ:WEB)

– Shares Owned by P.A.W. Capital Partners L.P. (as of June 30): 235,000

– Value of P.A.W. Capital Partners L.P.’s Holding (as of June 30): $4.27 Million

The hedge fund firm founded by Peter A. Wright added 15,000 shares of Web.com Group Inc. (NASDAQ:WEB) to its position in the company during the April-to-June period, ending the second quarter with 235,000 shares valued at $4.27 million. The position constituted 4.9% of the value of the hedge fund’s portfolio on June 30. Web.com Group offers a full array of internet services to small businesses, including domains, hosting, website design, and management solutions. In March, the company completed the acquisition of Yodle Inc., a provider of cloud-based local marketing solutions for small businesses. Yodle was acquired for roughly $341.9 million, which included $42 million of deferred consideration. Web.com had 3.44 million subscribers at the end of June, up from 3.32 million recorded at the end of June of 2015. The company’s total revenue for the three months ended June 30 increased to $187.82 million from $135.72 million a year earlier. Web.com shares are 15% in the red year-to-date. Ahmet Okumus’ Okumus Fund Management was the owner of 7.02 million shares of Web.com Group Inc. (NASDAQ:WEB) at the end of the first quarter.

Synchronoss Technologies Inc. (NASDAQ:SNCR)

– Shares Owned by P.A.W. Capital Partners L.P. (as of June 30): 150,000

– Value of P.A.W. Capital Partners L.P.’s Holding (as of June 30): $4.78 Million

P.A.W. Capital Partners L.P. owned 150,000 shares of Synchronoss Technologies Inc. (NASDAQ:SNCR) at the end of the second quarter, 40,000 shares less than it did at the end of the first quarter. Synchronoss Technologies offers mobile activation services to wireless providers, as well as cloud-based sync, backup, storage, and content engagement capabilities. The company has seen its market cap jump by 16% this year. AT&T and Verizon accounted for 68% of the company’s second quarter revenue. Although Synchronoss Technologies managed to achieve strong top-line growth in recent quarters, the company’s bottom-line growth has been less robust. The company’s second quarter net revenue grew to $157.55 million from $137.82 million posted a year prior. Joseph Mathias’ Concourse Capital Management has 13,619 shares of Synchronoss Technologies Inc. (NASDAQ:SNCR) in its portfolio as of the end of June.

Allot Communications Ltd (NASDAQ:ALLT)

– Shares Owned by P.A.W. Capital Partners L.P. (as of June 30): 1.12 Million

– Value of P.A.W. Capital Partners L.P.’s Holding (as of June 30): $5.49 Million

Allot Communications Ltd (NASDAQ:ALLT) was the largest position in P.A.W. Capital’s pool of holdings at the end of June, despite the Connecticut-based fund cutting its Allot position by 6% during the second quarter to 1.12 million shares. The shares of the Israel-based global provider of security and monetization solutions are down by 17% year-to-date. The company has a diversified customer base that consists of mobile and fixed service providers, cable operators, private networks, data centers, governments, and enterprises. Moreover, Allot Communications generated 39% of its 2015 top-line figure from Europe, a mere 8% from the United States, and 29% from Asia and Oceania. The company reported total revenue of $23.0 million for the second quarter, as tick up from $22.9 million in the first quarter of 2016 and $1.4 million more than it pulled in for the second quarter of 2015. Jim Simons’ Renaissance Technologies had 420,400 shares of Allot Communications Ltd (NASDAQ:ALLT) in its portfolio on March 31.

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