Filed under: Deals, Good news, International Business Machines (IBM), Options, Technical Analysis

International Business Machines Corp. (NYSE: IBM) announced today that it would buy Canadian business-software maker Cognos Inc. (NASDAQ: COGN) for $4.9 billion. The deal would enable IBM to deliver new business insights to a wider set of people across an organization, the company said in a statement. Usually when a company makes an acquisition like this one, its stock drops by at least a little bit. IBM is higher today on this news, which signals investors think this deal was a bargain and good for IBM. If you think that the company won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on IBM.

After hitting a one-year high of $121.46 in October, the stock has fallen off a bit over the past month. IBM opened this morning at $101.89. So far today the stock has hit a low of $100.70 and a high of $102.66. As of 10:50, IBM is trading at $102.51, up $2.26 (2.2%). The chart for IBM looks neutral and improving slightly, while S&P gives the stock its highest 5 STARS (out of 5) strong buy rating.

Continue reading IBM rises on Cognos (COGN) acquisition

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This entry was posted on Monday, November 12th, 2007 at 8:14 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.