Software…Continues to be 'The Place'

Cognos is being taken out by IBM at a nice premium. It looks like somebody leaked this last month. I blogged it and I should have chased it , when I speculated on the software takeover targets.

When the market turns again, look for the software leaders to continue their runs. The sector is in play.

Maybe perennial dog Symantec?

Disclosure- Ling INFA and CTXS and VRSN

One comment

  1. Justin Kuepper says:

    I agree, software industry is still in play and I’m in as well.

    My latest strategy has been purchasing backspreads in takeover targets once speculation starts to take a significant hold. My rationale is that since the stock is artificially high already, it is either going to go way up or way down depending on the final verdict. And backspreads make you money if it goes down (fixed small amount) or gives you call exposure on the upside (large gains). Also, LEAPS can be used to make this a long-term strategy.

    I made really good money doing this during the last year to hedge fund targets by watching Schedule 13D filings containing activist letters to management. Slowed down recently, but still very profitable.

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