From Microsoft Investor (http://www.investor.msn.com/home.asp)
In an article called 'Strategies: A Merger-Mania Treasure Map', ALDNF was mentioned as a possible takeover/merger target:
...Determined to broaden the universe of potential tech takeover plays, we created a set of criteria to expand on the theory. We searched for stocks with average daily trading volume in the past two weeks and month that was higher than their average for the past year, combined with lower-than-average relative strength over the past three- and six-month periods. To find ones with basing patterns, we looked for stocks that have not advanced in the past quarter. We wanted this company to be fundamentally healthy, however, so we looked for solidly profitable companies that are generating a return on equity of greater than 10% and have net profit margins better than
5%. We also wanted these stocks to be trading within 50% of their 52-week low.
Without further ado, our potential tech-merger class of March '98: Adaptec (ADPT), Award Software International (AWRD), Intevac (IVAC), Alladin Knowledge Systems (ALDNF), Jetform (FORMF), Unitrode Corp. (UTR) and Eltron Corp. (ELTN).
Each of the names, of course, has its own unique story to tell, land mines to avoid, and potential gains to be reaped if a deal were to be proposed. As Bedford says, to find takeover plays you also "have to have a fundamental bent. Look at the company's product line and say, 'Is this something someone else wants, and does it fit?' "
Next week, we'll dissect each of these stocks individually to see which, if any, among them are really ripe for the picking. For you do-it-yourselfers out there who can't wait to get at 'em, happy hunting -- and let us know how your search turns out. |
