NetSol Technologies Inc (NASDAQ: NTWK), Openwave Systems Inc (NASDAQ: OPWV) and China Information Technology Inc (NASDAQ: CNIT) are technology stocks with strong technical charts. However, technical performance need not be the sole factor to buy them.

NetSol Technologies Inc (NASDAQ: NTWK) has a market capitalization of $96.3 million, stock price of $1.73 and to top it all a beta coefficient of 2.65. The stock has gained around 13 per cent in the last month, amid choppy broader markets. In this age of internet IPOs, gaming companies are favorites. At the risk of being classified an old fashioned investor, I admit I would stick to the software players which have industrial companies as their clients – industries like automotive, banking, healthcare, and financial services.

The company has got an expertise in developing application software for such clients. Although the business model isn’t really viral-worthy (unlike Facebook and social media), it has got revenue and profit margin visibility. In the first quarter ended March 31, the company posted a net profit margin of 43 per cent. In the current quarter too, it has won significant contracts keeping its order book intact. It has manageable debt on the balance sheet and a P/E ratio of 9.67. As the current bull cycle is complemented with strong volumes, the stock can approach the annual high of $2.39.

Openwave Systems Inc (NASDAQ: OPWV) develops software for mobile and broadband operators. The company is nearly debt free with a market capitalization of $194 million and offers meaningful growth in the near to medium term. Similarly, the stock also represents opportunities on the long side. It has traded in a tight range in the last 6 months. While being debt free is a positive for a company this big, what has really stopped investors from lapping it up is the inability to grow top line. Unless the company shows

China Information Technology Inc (NASDAQ: CNIT) has it all including a profitable business that keeps growing and a deleveraged balance sheet. In a bull market, stocks like this can easily sell at a P/E multiple north of 30 but CNIT trades at a tenth of that currently. One can’t really say when the realization will happen with regards to the valuations as there are no immediate triggers in sight. That being said, the stock certainly is a value buy at current price of $2.11.