Nobody's saying anything.
Buyouts happen. You won't get a chance to buy on the rumor when that happens, imho. If you're in, you could "possibly" make money. If you're not, you can read the announcements and PR if/when that happens. :)
If a company's a good candidate for acquisition, you'll benefit eventually - don't bet on it happening on a schedule.
So this is how rumors get started eh... ha..
Just saying that they will get their sales into the low 100's soon enough... ORCL paid $600Mil for RETK when they were losing money on 160Mil in Sales and had very little cash... if a company is a strategic fit and they can see where those sales would be much more profitable in their shop e.g no additional selling or administrative expense, that is where you get the high multiples...CKSW has 60+Mil in sales now and $30Mil in CASH They may break $100Mil in 2011 and are profitable... so if SAP paid $600Mil (570Mil net of cash) they would only be paying about 5.7X next years sales for a company that is very strategically important to them...
Easy case to make...it's not like this is Billions... chump change
I'm always amazed by the numbers thrown around. Yes, many sw companies have PEs of 30 and higher as some have pointed in the past. And if that's the case - why is CKSW pegged so low on the PE scale??
It makes no sense! :)
That is where we should be mid Teens... then along comes SAP and buys it out at 20 bucks... $600Mil for this company with it's leading market share and blue chip client list is cheap in the hands of an SAP... or IBM for that matter... chump change...
Not if, but when...