Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways: Sun Burned... By IBM


Strengthen your portfolio in good times and bad.


Dim Sun

Talks between IBM (IBM) and Sun Microsystems (JAVA) are completely breaking down, threatening a $7 billion acquisition. According to the Wall Street Journal, IBM withdrew its offer to purchase Sun over the weekend after executives there formally rejected the deal. Although both parties are still in talks by telephone, Sun's board believes IBM's offer gives it too much leeway to walk away from a deal. Initially, Sun accepted a takeover price of $9.55 per share -- about $1 lower than expected -- if IBM promised to proceed with the transaction even in the faces of forced divestitures by regulators.

Sun shares are down 26% to $6.30 in pre-market trading.

From the Bull Pen: IBM is the leader in tech. Bulls can take advantage of its weakness, fading (read: buying) the stock into gapfill near $98.

From the Bear Cave
: For tech bears, one might look to Apple (AAPL). It's at the top of its Bollinger Band and hasn't reached its 200 DMA since last fall. One can set a buy stop near $117.

Quick Check Around the World

Asian trading closed with the Hang Seng 3.11%, India 1.80%, Nikkei 1.24%, and Taiwan 0.48%.

Glancing towards Europe, we see the CAC 1.11%, DAX 1.07%, FTSE 0.96%

As of 8:00 AM EST, S&P Futures are trading -4.00 to 837.00, and Nasdaq futures are -7.00 to 1307.00.

A Look at Commodities

Over in commodities, crude oil is trading +0.37 to 52.88 while gold is down -16.6 to 880.70 this morning. Silver is -0.315 to 12.42, and copper +0.05 to 200.10.

The dollar index is -0.10 to 84.4550.

No events on the radar today but take note of Alcoa (AA) kicking off earnings season Tuesday afternoon, so click here for the full trading radar.

Welcome back, Minyans. Good luck and have a great day.

In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos