Oracle Gets Icahnic, Bids For BEA Systems...
Oracle has been growing through acquisition since the end of the tech-bubble...
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.
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.
Daily Recap Newsletter