Archive for October, 2007
Monday, October 29th, 2007
BEA Systems (BEAS) continues to hold out for a better deal from software giant Oracle (ORCL). The current board of directors sent a note to BEA shareholder Carl Icahn today explaining that they weren’t opposed to selling the company, but they felt that the current offer of $17 per share was far too low.
Personally, I believe Icahn is right to demand a sale at $17 - with the trouble BEA has had recently growing licensing revenue, as well as the fact that the company hasn’t reported earnings for several quarters (due to options backdating and earnings restatements), the stock could really benefit from the acquisition.
Enterprise computing is all about momentum and compatibility, as the stuff is really expensive to implement and maintain. Bringing BEA into the Oracle portfolio would allow both to benefit, as the joint company would likely realize economies of scale in the sales pipe as well as through integrating SOA (Service Oriented Architecture) efforts.
Posted in Large Cap Stocks | No Comments »
Saturday, October 27th, 2007
After the dot-com crash almost 7 years ago, many investors swore they would stay far away from the likes of tech stocks for good. But it looks like things are finally looking up for the industry. Per Barron’s, August was the first time since 2000 that tech growth funds saw an influx of cash from investors.
So, while valuations of Google and Apple are much too rich for my taste, I thought I would take a look at some of the more reasonably valued large cap tech stocks. At the top of the list is Oracle.
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Posted in Large Cap Stocks | No Comments »
Thursday, October 25th, 2007
I can’t help but wonder, as I sit here watching Jim Cramer pitch PSYS wearing a straitjacket, if the whole thing maybe is in bad taste. I mean, I really like the guy and think he’s hilarious (especially when wearing a matador outfit with uber small chin strap hat) but some folks may not appreciate that one. I can see the CNBC bigwigs sweating in a conference room somewhere.
That being said, I do like that he’s featuring the new book Microtrends. I think the author, Mark Penn, has a pretty good eye for subtle trends that are shifting underlying markets (including “Cougars”).
Related Links:
Microtrends: The Small Forces Behind Tomorrow’s Big Changes
Posted in Investing | No Comments »
Wednesday, October 24th, 2007
Bank of America announced it would be cutting 3,000 jobs in the wake of dismal results from its investment banking arm. The company released Q3 2007 earnings on October 18th, where it reported that earnings from its investment bank fell 93%.
BOA will replace the head of the i-banking unit with another executive, Brian Moynihan, who currently runs the BOA Global Wealth & Investment Management division.
Related Links:
Bank of America Earnings Disappoint
Posted in Large Cap Stocks | No Comments »
Wednesday, October 24th, 2007
According to the Wall Street Journal, Microsoft announced it will take a 1.6% stake in popular social networking site Facebook today. The tech giant hopes to cash in on the continued shift toward the internet for advertising placement. The move is a smart one from a stockholder perspective, as it gives Microsoft a foothold in a market it has traditionally struggled in. At the same time, it prevents Google from further monopolizing the market as companies begin to look overseas for growth opportunities in the online ad space.
Related Links:
New York Times Article
Posted in Large Cap Stocks | No Comments »
