SHVA has been showing some strength comparing with other network stocks lately. The past week has been disastrous to the group. CS, BAY, CSCO, ASND, NN, PAIR, FORE,... every single one has lost double digit in value %-wise. Only SHVA skipped the dramatic down turn. To me this looks like there is an invisible powerful hand underneath SHVA that supports it and prevents it from sinking. The question is, whose hand is it?
I sense next week to be a very important week. Something big is gonna happen? Let's summarize what's going on at this moment:
1)Shiva and Nortel is re-negotiating the loyalty issue. Could that make a turn to produce an out right buy-out result?
2) Nortel is gonna do 3-for-2 stock split next week. Something could happen on or before that split?
3) Shiva has released several important news this week, including a contract win with the world's 3rd largest ISP, and the best product award from PC magazine. These releases looked to me like a message Shiva sent to its suitor, saying "I'm worth it!"
4) EVERY Shiva employee is talking about a rumored NT offer worth $18 - $22 a share. The importance of this message is that, this time the rumor does not come from outside, or Wall Street, but from inside! There is no such a thing as a wind-prove wall. If there is a negotiation of this nature going on, there must be someone in the company knows it! There must be more people got a hind of it! You know, those phone calls, letters, messages, visits, travels, etc. etc...
5) stock's strong performance lately. Someone must have sensed that a deal is coming, therefore secretly accumulating the stock big time! We've seen the big block trades frequently in the past week. Remember, this is the worst week for the tech stocks, and yet SHVA stands on the high ground with little damage to it. They say "tape doesn't lie". This trading pattern alone tells us that something is cooking!!!
If it looks like a deal, smells like a deal, behaves like a deal, then most likely there is a deal! Let's see what we got by next weekend!!!
Good luck!
MB |
