BEA Systems Inc  (BEAS) Trade Now »     Rate BEAS  -  Discuss BEAS  -  Add to Watch List        

It is highly likely that BEAS will eventually be acquired; however, since story may take  months to unfold there are better places for one's trading money.

Oracle made an offer for BEAS at 17.  I expect BEAS to settle between 10% and 5% below the final offer.  I expect that the market will move BEAS to above 20, and that will probably happen on Monday or Tuesday.  So if you can buy BEAS in the low 18's on Monday and sell in the 20-21 range, your odds at a quick 5% to 10% return are favorable.

Company finished internal review on option grants which have been an overhang on the stock.  Will be viewed as a relief and should cause the stock to rally, although informal SEC review could pose a continued risk.  Company is reporting earnings on February 22, which could be pretty solid, especially after the crappy quarter they reported last November.  Stock is not particularly cheap as it is trading at 20x next year’s earnings, pretty much in line with other software cos, but if company can show growth again, stock will be poised to move higher.