In a move widely seen as an attempt to aggressively weaken rival SAP AG’s market position, Oracle announced today it would by Hyperion (HYSL) for $3.3 billion in cash.
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Hyperion has a suite of financial management applications used for financial reporting and analysis. Company’s can use these reports as feedback on how closely they are meeting their productivity and financial goals.
SAP AG’s website states by using their products companies “gain the visibility to pinpoint inefficiencies — and the capabilities to transform them into competitive advantage.” In plain English, both companies do the same thing.
Oracle will pay $52 a share for the Hyperion stock. This spurred a flurry of buying yesterday raising Hyperion’s stock $8.73 a share to $51.57.
Other possibilities for takeover:
Analysts identified several other companies in the business intelligence arena who are also ripe for a takeover bid. Two companies frequently named are the French-based company Business Objects (BOBJ) and the Canadian based Cognos (COGN).
The market sent mixed messages as Business Objects stock lost nearly a dollar and Cognos gained nearly a dollar.
SAP AG said in a statement yesterday it remains focused on organic growth and continues to keep its eyes open for “smart, well-placed acquisitions to round out our product capabilities on behalf of customers.”
Competitors:
Competitors for COGN include: Business Objects SA (BOBJ), Hyperion Solutions Corp. (HYSL), Oracle Corp. (ORCL), Actuate Corp. (ACTU), and Microstrategy Inc. (MSTR).
Competitors for BOBJ include: Cognos Inc. (COGN), Hyperion Solutions Corp. (HYSL), MicroStrategy Inc. (MSTR), and Actuate Corp. (ACTU).
Potential Trades:
All of the following option trades have 50 days until expiration. Cognos is currently trading at $39.06 and Business Objects is currently trading at $35.12. These trades were discovered using the powerful suite of option search tools found at PowerOptions.
| Covered Call – Cognos Inc. (COGN) $ 39.06 (50) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPTION | Strike Info |
Opt Bid |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CRQDH | 07 APR $40.0 | $1.90 | 4.90% | 5.10% | 7.60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Covered Call – Business Objects SA (BOBJ) $ 35.12 (50) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPTION | Strike Info |
Opt Bid |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BBQDG | 07 APR $35.0 | $1.80 | 5.10% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Cognos covered call trade, an out of the money covered call, offers 4.9% downside protection and a potential profit of 5.1% if the stock remains unchanged. If the stock rises above the $40.00 option strike price, the potential profit becomes 7.6%. The break-even price of this trade is $37.16. The net cost of this trade, per 100 options, is $3,716.00.
The Business Objects covered call trade, an in the money covered call, offers 5.1% downside protection and a potential profit of 5.0% if the stock remains unchanged, or rises. The break-even price of this trade is $33.32. The net cost of this trade, per 100 options, is $3,332.00.
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.
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[tags] SAP, ACTU, Actuate Corp., BOBJ, Business Objects SA, COGN, Cognos Inc., HYSL, Hyperion Solutions Corp., MSTR, Microstrategy Inc., ORCL, Oracle Corp., covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]