Thursday, November 04, 2004

DoubleClick on sale!

DoubleClick (DCLK) announced that it is looking to either spinoff certain units or selling outright. I have always seen DoubleClick as a buyout bait and considered it undervalued. I have already mentioned it a couple of times on my blog.

I started buying DCLK at around $11/share and increased the volume as it dropped to 7 and then to 5! I just hope that I will atleast breakeven in the event of a takeover. I definitely think that DoubleClick's value is much higher than the current price.

On a related note, I read a piece about the bubble of 99/00 not yet being over and how there will be another bout of failures. While I cannot challenge that, I think a few of the dot-com survivors will get acquired in the meantime.

As an example, Viacom announced that it may buy the rest of Marketwatch (MKTW) that it doesn't yet own. Others that are candidates include, Homestore (HOMS), E-Loan (EELN), (DSCM), The (TSCM), (FLWS) and CNET. Note that most of these are highly speculative and you should be ready to lose everything if you invest in these.

I own a few of E-loan and and will continue to add slowly. When these dot-com survivors have brick-and-mortar parents holding a sizable chunk, the parent is most likely to pay a small premium to own the rest of the company. Ofcourse, not a great ending if you had bought in the high-hundreds during the boom times! Thanks to my then financial state, I never bought these at nose-bleed prices - lucky indeed.


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