i know and admit that i have been hot and cold with cs...and many other plays for that matter... but what i try to do is time the damn things so i'm not on the outside looking in...cs is by far the best networking takeover stock out there...and yes i have been saying for a long time now they would go...sh*t if only i can be that fly on the wall...but i will say this..i strongly believe this deal must be completed before the new year so i would think it would have to be announced within the next 30 days....
Well, now we're making some progress.
Let's look some more at reasons to own CS. We've discovered that as good a buyout candidate as CS might be, it is at best good luck to try and determine when a takeover may occur. Investors were begging FORE to sell, but guys like Eric Cooper (no relation) insisted on delaying that prospect.
The company that buys any of these targets has to justify paying the required premium that a buyout entails. That means finding ways to make the purchase accretive to earnings immediately, or as soon as possible. How many people here would call their brokers and ask to buy some CS for $32 a share? That's just what you want Siemans or GEC to do. Acquirers have the same goals we do.
CS has new leadership, who has predicted a return to healthy growth rates over the next eighteen months. A pretty tall order, but not unfathomable. I am waiting to see if there will be any indications that they can accomplish this, but it will take a quarter or two to find out.
One of the reasons I believe the stock declined subsequent to earnings was flat revenues. Not the indication investors were looking for.
I don't know if you will be rushing for the exits by the end of December if I buyout doesn't occur, even if just for a tax loss, but I'm sticking with what I've got.
There maybe as much upside potential in this one if management can come through as there would be with a takeover. Think of all the stocks on anyones "wish I had more of that one" list: SUNW, AWRE, TLAB, SAPE, CA, ORCL, and so many others.
The raging bull market has slowed, if not stopped for a while. Diversification, and investments based on sound reasoning is the way to go. Playing momentum or picking takeovers is a crap shoot at best.
All IMHO, of course.... |
