Thanks for NOTHING
First I’d like to say that I have no preference for any brokerage or analysts but I know that the last post I did about RIM pointed out how off the RBC Capital Markets analyst was. Once again I’m talking about RBC Capital Markets, albeit a different analyst because they released an update on 3PAR on 9/3. The recommendation was to buy, and the target price was raised to $33. For those of you who haven’t been watching the bidding war between HP and Dell over 3PAR, let me get you up to speed. HP had officially won the bidding war for $33/share when it started with Dell offering $18/share. It went back and forth several times before Dell gave up on 9/2. The next day, RBC releases this untimely information when the deal is pretty much done, recommending a Buy with a target price of $33. The stock was already at $32.88 with the remaining 12 cents due to the unlikely risk that the deal would fall apart. Exactly how does this information help investors? Perhaps when it was hovering around $10, indiciating that it was a take over target would be useful or even guessing how much the 3PAR would sell for would be helpful.
That’s why I say Thanks for NOTHING.