Let's see if ARBA can make a stand here - up after hours.
I rarely buy stocks and hold them in this environment. I still like GLW and ARBA though at their respective prices.
I am happy to report the prospects for each still look good long term, even if the immediate future is uncertain. The merger with Agile will apparently go through no matter what. By the way, I believe the rumor that it might not is one reason the stock has not yet maintained any momentum off the $10 level. From what I can see, that rumor is just that - a rumor - as you can see from the below excerpt. What's more, ARBA is said to be getting a bargain on Agile now: thestreet.com
"But based on Ariba's closing price on Monday, Ariba is now getting a bargain. On Monday the deal only had a $721 million price tag, or just $4 million more than Agile's current market cap. In Wall Street's eyes, that amounts to little more than a rounding error.
Bryan Stolle, Agile's CEO, says the unfortunate drops in respective share prices aside, the deal is going through.
"When you're doing a stock-to-stock deal, it's always a moving target," Stolle says. "This wasn't done for a short-term impact. This was all about what do we think will be strategic over the next five to 10 years. When you put Ariba and Agile together, you really get scale."
Analysts say the deal will go through because it's the best thing Agile has going, especially in light of the on-the-cheap deal that i2 got on RightWorks last week.
On the Agile."
ARBA's stock is cheap here as long as they don't hit too many snags in the months ahead. Do we dare predict that stocks like this are a "Strong Buy" near $10? Probably not, but I'll do it anyway. |
