>I am interested in how you plan to play this COMS/USRX thing.>
Doug, I'll be in on it somehow (not necessarily tomorrow). I have already considered a few scenarios, and what I'd do. But it's all too speculative to make a decision.
Two things to know: COMS is a slightly safer investment at this point. On no further news, USRX will go the way COMS goes. But if for some ungodly reason, the deal isn't allowed to go through, USRX stock has further to fall.
On the other hand, USRX offers more potential reward....It will move in tandem with COMS, but if there is news of a bidding war, USRX will run.
That being said, I might buy both stocks soon.
>What chances do you place on the chance that there might be a bidding war for USRX? Might Cisco make a run for it ? Or maybe even IBM.>
There's always a chance. I don't dare speculate on how much. Anyway, there are many possible suitors for USRX. Don't leave out ASND!
>Do you think this merger will hurt Cisco.>
Everyone says it will....But I think it hurts ASND the most. ASND TNT's and USRX's Total Controls compete with one another. A USRX/COMS merger puts ASND on the defensive.
About CSCO: CSCO is more mid-high end, while COMS is more mid-low end. The USRX merger doesn't change that very much. I'm sure that it's not good for CSCO, but it's not devastating!
>BTW, did you see the recent news on Citrix? I think it is going to be massacred tomorrow on top of the bloodbath it has gone through recently.>
Yes. I used to be long on CTXS....bought it last spring, and held until only a month or two ago (sold at $46 (something like that), because I got bored with it). I shorted CTXS yesterday, but covered today (damn it!). This is bad news. Lemme email you with more (about how the market knows that something is wrong--just like how SHVA went down for seemingly no reason. Same with CSCC, XYLN, etc. (and USRX, in a way). When I shorted it, I didn't know why it was down, but I knew that something was coming....The reason I covered today, was because I've been really trying to focus on taking profits with discipline (the stock went down quicker than I expected).
I wish you luck (especially with CTXS).
Sal |
