Last night EMC announced the acquisition of RSA Security (RSAS) for $28 per share in cash or about $2.1 billion. After stripping out RSA´s cash position, it appears that the price paid for RSA was approximately 5X 2006 revenue estimates. This acquisition of RSA Security is very positive for all the players in the identity assurance and authentication market, and is specifically bullish for my pick in the sector: ActivIdentity (ACTI).
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Archive for June, 2006
MediaRing Ups Bid for Pacific Internet
Congrats to our subscribers who have held on to Pacific Internet (PCNTF). Today, MediaRing increased their bid for the company to $9.50 per share. As I mentioned in this post about a month ago, I think PCNTF is worth between $10-$12 per share, so this new offer is getting very close to my estimated fair value of the company.
So what am I doing now? I’m still holding onto my shares for reasons related to taxes and the timing of a potential acquisition. All in all, I have no urgent reason to sell right now and of course there is still the possibility of a higher offer. At the same time, I would not be purchasing new shares at this price, since I suspect that, though management will reject this offer, they will have a very hard time convincing shareholders not to accept it.
Please Note: I first recommended Pacific Internet (PCNTF) at $7.60, and still hold a position in the
stock. All ideas, opinions, and/or forecasts, expressed or implied
herein, are for informational purposes only and should not be construed
as a recommendation to invest, trade, and/or speculate in the markets.
Any investments, trades, and/or speculations made in light of the
ideas, opinions, and/or forecasts, expressed or implied herein, are
committed at your own risk, financial or otherwise.
Up, Down, Up, Down…
I really got a kick out of these three headlines, which were all written today:
Oil Prices Rise to $72 a Barrel in Asia Houston Chronicle
Oil Prices Decline Despite Gulf Storm Forbes
Oil Prices Steady After Iran Reaction Forbes
Ok, wait a second, so which way are oil prices headed? Bets anyone?
The Perfect Marketing Timing Tool
The holy grail of traders is a foolproof market timing tool. It helps you buy at the bottom and sell at the top. Now of course this is impossible to do in practice, but that does not mean I’m going to give up my hunt for that elusive market timing indicator. The potential profits are just too alluring.
Stocks and Horse Racing
Is there a connection between betting at the horse track and the stock market? Benjamin Graham, the father of fundamental investment analysis and one of the most influential investors of all time, seemed to think so. Below are some interesting quotes from lecture ten of The Rediscovered Benjamin Graham, a compendium of transcripts from his lectures given to security analysts in, I believe, 1946. The full transcripts are available over at Wiley.com.
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