With the doubling within the JAVA stock price at March 18, 2009 in line with a Wall Street Log report that IBM is bidding to shop for Sun Microsystems, and when using the StockTradersPlace sell action commentary on March 21, a open question is 揝hould the particular stock be shorted?? Here is where other factors are considered beyond technical evaluation. With speculation that other individuals such as Hewlett-Packard (HPQ) and even Cisco Systems (CSCO), a few, may want to get Sun Microsystems, a firms war can emerge. Hence, it is probably high-risk to short the stock at that time, although selling the lengthy position holding is the prudent quest.
I continue to often be amused by corporate acquisitions as well as price paid for these sort of actions. I was involved usual scenario in 2001 (at the onset within the tech/telecommunications industry meltdown) from where the company I was being employed by ballooned to 95, 000 employees largely over the contribution of various corporate acquisitions before year 2001. Today, that company has underneath 32, 000 employees there are filed for bankruptcy safety.
The previous paragraph were meant to suggest the identical fate for IBM however , was simply old memories arriving at the fore as the following Sun Microsystems acquisition has been reported. The price is definitely high at $8B. You'll see corporate culture clashes plus integration issues, as well as very clear conflicts in technology relating to Intel and Advanced Micro Devices microprocessors included in IBM server products versus sunlight Microsystems SPARC architecture microprocessors.
And exactly what is the latest craze together with Sun Microsystems anyway? Certainly, Sun抯 legacy is around engineering workstations and server programs. But in 2007, Sun changed its share symbol from SUNW so that you can JAVA to clearly re-orient the agency strength and leadership during the JAVA programming language. As significant for the JAVA technology is with the Web computing industry, one must continue to question the way they intend to utilizing this. As an investor/trader, this may most important question in order to answer.
It will be very interesting indeed to check out how this unfolds if IBM does find yourself acquiring Sun Microsystems. Will IBM then customize JAVA now for the own internal purposes, thereby working with a potential issue with the particular open JAVA standard? How must IBM intend to recoup the $8B spent predominantly to the acquisition of the COFFEE technology which rightly belongs within the domain of open standards.
As an investor/trader regarding JAVA now and IBM now and at some point, the company fundamentals are important to analyze past the technical analysis signs and symptoms. This is the time for you to avoid being over-focused in technical analysis alone.
Copyright laws? Mar 2009 StockTradersPlace. com
