Saturday, July 29, 2006

Hit #107

Watchguard (WGRD) is being acquired by Francisco Partners for $151 million in cash. The offer, of $4.25/share is a premium of 12% over my average cost per share of $3.79.

A few other companies in this sector now look very attractive.
Checkpoint (CHKP), with over a billion in cash and no debt, is trading at just twice its book value, and makes for a tempting target.

Internet Security Systems (ISSX) is another target, but it has had a big runup recently due to takeover rumors. I own some shares, but will not be buying more at its current price.

Blue Coat Systems (BCSI), Websense WBSN), McAfee (MFE), Secure Computing (SCUR) are all looking like good buys now.

SonicWall (SNWL) is among the few in this sector that have done well recently. It remains a target for a larger player, though that seems to be the only positive catalyst for this company. I own a few shares, which are now up around 40%.

Previous hit - ATI (#106)


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