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Tech Bargains ?

As expected Yahoo rejected Microsoft offer. I think it is typical negotiation tactic and will play out similar to BEA/Oracle and both companies will split the difference and settle the deal at about $35-36 (just right at the magic number of $50B). Yahoo does not any way out - they had last 2-3 years which they wasted in adding any shareholder value. It would be fun to watch all the drama along the way.

In last few months, I was not tracking many tech stocks for active investments. But this year, techs are getting killed and once high-flying stocks are trading in single-digits. For example, SIRF which is leader in GPS chips is at $7 (used to be over $30). Aruba Networks which is only other player in wi-fi gear is trading below $5 (it used to be above $20). Granted that both these companies gave some serious revenue warnings but I think markets over-reacted to news and both these stocks would be up by 50% in next 12 months (and by the way, they are as attractive takeover targets as Yahoo was when it fell below $20)

Looks like Republicans are set with McCain as their candidate (conservatives don't have a choice) and democrats are still wondering who will be their candidate. Obama is gaining traction but he is no-where near half-way mark and most likely this race is going to go into Summer.

The hottest Indian IPO - Reliance Power listing was a bummer. It listed nearly 17% BELOW offer price of Rs 450. How quickly the fortunes change. I think Rs 350 gives a good entry point for Reliance Power

That's all for now
Good luck and good night

/Shyam

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