Versant Stock Up 30%; Oracle Merger Rumors Cited>VSNT
By Paula L. Stepankowsky
LONGVIEW, Wash. (Dow Jones)--Shares of Versant Corp. (VSNT) were up nearly 39% Monday, probably on rumors that Oracle Corp. (ORCL) might be interested in merging with the Fremont, Calif., company, said Josephthal & Co. analyst Bert Hochfeld.
"There are merger rumors," he said. 'I have heard Oracle mentioned as a possible suitor. Other investors have suggested that to me."
Officials for neither Versant nor Oracle were immediately available for comment.
Hochfeld said it would make sense for Oracle, based in Redwood Shores, Calif., to be interested in Versant, which had a disappointing operating performance in the third quarter but has a strong technology franchise.
"Oracle is a large database vendor that doesn't have a product in this area," he said.
Versant makes object database management systems designed to store and manage text, graphics, voice, video and data. The company's products and services are used to develop applications for enterprise networks, intranets and the Internet.
Volpe Brown Whelan & Co. analyst Paul Bloom said there has been buying interest in the stock for the past few days, and Monday's activity could be due to investors seeking bargains in microcap stocks.
On Oct. 28, Versant reported a third-quarter net loss of 44 cents a diluted share, compared with year-earlier net income of 7 cents. Revenue declined to $5.9 million from $9.4 million.
"We were disappointed with the last quarter's earnings," Bloom said, "but we still kept a buy on the stock because they have fundamental technology important for a number of markets and we do feel it will grow."
Following a 25.6% gain Friday, Versant stock recently traded at 4 1/4, up 1 3/16, or 38.8%, on volume of 531,800 shares, compared with a daily average of 55,200. |
