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Oracle Gets Icahnic, Bids For BEA Systems...


Oracle has been growing through acquisition since the end of the tech-bubble...

Editor's Note: The following content appeared on the Buzz & Bneter at 11:15 AM and is being reprinted here for benefit of the broad Minyanville community. Enjoy!

Hello from rainy upstate New York where it occurs to me I really should have listened to Carl Icahn on September 26th when he came on Fast Money and said he thought BEA Systems (BEAS) should get acquired. Heck of a play by Carl and the Chairwoman!

Zod Ellison and Oracle (ORCL) are playing the cusp of the next trend in M&A by doing what they've been doing for years: swallowing competition. Oracle has been growing through acquisition since the end of the tech-bubble when Larry quite correctly noted that organic growth was slowing. Now Oracle is as much a roll-up as anything else; not that there's anything wrong with that for shareholders of either Oracle or BEA. In other notes:

  • Deeply strange article about Children's Place (PLCE) in today's NY Times. In only loosely related news, the stock is higher today on word that the company will consider putting itself up for sale. If you've been following the trade from earlier this week, you may look to take at least half the profits off the table now. Why? Because specialty retail is a brutal place to create a turnaround, as evidenced by...

  • Coldwater Creek (CWTR) is sharply lower today after the company managed to find new and worse ways to guide lower. I've said it before, I'll say it again; you gotta stay on your toes in the world of specialty.

  • In Bigger Picture news, another frustrating day for the Bears today. I, for one, thought the mess of yesterday afternoon would continue into today. Weakness made all kinds of sense for a trade but some flat-out good news simply snatched the fish outta Boo's mouth this morning. You don't have to like it but you have to respect that kind of price action.

  • Electronic Arts (ERTS) overpaid for a few software titles last night, in my opinion, but the stock is higher today. The Real Story is that ERTS guided higher in the conference call to analysts. I still own and prefer Activision (ATVI) but the estimates are too low across the industry.
Position in ATVI

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