August 24, 2010 | In: Technology

The Fight for PAR

I have written yesterday about PAR and how it tripled in about 8 days. Apparently the stock will continue its ascent at least for the foreseeable future, as the war between Dell and HP has just started. Both companies want to buy PAR, and they will keep outbidding each other until someone gets tired and concedes defeat.

It seems that DELL and HP are betting for a brighter economy, with all the current doom and gloom, both companies are offering a substantial premium to buy a small hardware company that is losing money, and is also under investigation for misleading investors. This is something in these uncertain times.

This fight lead to the increase in price of other similar hardware companies (producing components that are integrated in servers), including Quantum (which is currently trading at 1.38). Apparently investors think that these companies may be targeted for acquisition as well.

I wouldn’t buy PAR at the moment, for the sole reason that I think it’s way overpriced, at least for the current market, and any hesitation from DELL’s or HP’s side will lead to the collapse of the stock.

Let’s see how this will end…

1 Response to The Fight for PAR


PAR-lay? « Fadi El-Eter

August 27th, 2010 at 3:41 am

[…] only a matter of time before either HP or Dell will say parlay when it comes to the fight over PAR. HP has just outbid DELL at $27 per share. I don’t believe it’s in any party’s […]

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