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Brocade Communications Systems, Inc. Message Board

  • stockmanmark stockmanmark May 3, 2005 6:01 PM Flag

    regarding the buyout...

    I think this stock is being manipulated to death due to the impending buyout. I don't think anyone could find a better company to acquire than BRCD. The problem is I think the buyout will be worth about 1.2 billion or so, leaving the stock worth around 4.35 or so, factor in the cash and other assets (ie. infrastructure) and we're looking at $4.75 - $5.25 per share valuation. I think this is the pressure on the stock. It also allows fund managers to "get in" on the ride and pump a quick 35% or so into their green column. I think it's inevitable.

    If you owned a company or were on the board of a company that you wanted to actually "PRESERVE" stock valuation, you'd be aligned with alot of people on this board and doing proactive "damage control" PR to keep the stock at fair market value. If on the other hand you are in the know, and see the big don't mind a little "panic selling" and devaluation. You simply see it as a chance to increase holdings. I see no other reason for the lack of PR or "good news" regarding the next quarter or this year. No news in business can be great news. It can also sink the ship but it's better than the hyper-inflated "gee aren't we a great company" news briefs to pump a stock.

    I like where we're at and will continue to accumulate the crap out of this stock.

    Cheers to all and good luck. Hold the course.


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