Merger and Acquisition #8: Sourcefire Inc
The eighth potential take over target for the cash-rich big tech companies according to Bloomberg BusinessWeek is the comparably cheaper Sourcefire Inc. (Nasdaq:FIRE) with market cap of 750 million. Sourcefire is a open source cyber-security solution provider with clients from most Fortune 100 companies. Its software and hardware cyber-security solution would fit with Oracle, IBM and HP.
Shares of Sourcefire Inc. gained almost 500% from $5.5 in January 2009 to $32.7 in October 2010 and dropped back to $27 recently due to weak 4Q guidance. The technical chart shows weakness with 20 day moving average dropped below 50 day moving average. The insider transactions is also bearish with continuous selling trend. As stock drops and the company gets cheaper hopefully it would create interest among the big tech buyers.
Shares of Sourcefire Inc. gained almost 500% from $5.5 in January 2009 to $32.7 in October 2010 and dropped back to $27 recently due to weak 4Q guidance. The technical chart shows weakness with 20 day moving average dropped below 50 day moving average. The insider transactions is also bearish with continuous selling trend. As stock drops and the company gets cheaper hopefully it would create interest among the big tech buyers.
posted by Stock Geek at
10:39 PM
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