1) Someone desperate to get out of GRMN, or
2) Someone trying to sound smart and important by pretending to be in the know
Let's look at some other MSFT-for-whoever rumors that have popped up on Briefing this year:
August 11, 2008 - INTU Aug 30 calls (volume: 3190, open int: 1540, implied vol: ~38%, prev day implied vol: 29%) -- the Sept 32.5 calls are also seeing interest as strength in the stock is attributed to a MSFT-for-INTU rumor.Now let's count up how many of these rumors were true. Yep, you've got it, not one of these rumors were true. And can anybody out there tell me why Microsoft would want to enter a terrible industry with shrinking growth and profit margins? Sure, Microsoft has made some goofy decisions with its money ($5 billion AT&T investment anyone?) in the past, but buying Garmin would top the list.
July 18, 2008 - Akamai Tech pushes to session highs as renewed MSFT-for-AKAM rumor makes the rounds.
June 30, 2008 - VCLK Jul 17.5 calls (volume: 3120, open int: 4400, implied vol: ~67%, prev day implied vol: 59%) -- the Jul 15 calls are also seeing some interest as an earlier spike in the stock is attributed to a renewed MSFT-for-VCLK rumor;
May 27, 2008 - Reuters reports shares in Yell Group rose as much as 5.4% early on Tuesday as traders cited market talk of bid interest from Microsoft (MSFT).
May 5, 2008 - McAfee pops to session highs in past few minutes; strength attributed to rumor that MSFT could acquire MFE now that YHOO deal fell through (34.21 -0.04) -Update
January 11, 2008 - Limelight Networks: Rumor: MSFT to buy LLNW - Silicon Alley Insider (6.87 +0.88) -Update : Silicon Alley Insider story reports that lots of "Microsoft to buy..." rumors banging around these days, and here's another one: Microsoft is interested in buying content-delivery-network LLNW.
The moral of the story kids? Most takeover rumors are pure BS. Ignore them. Now!
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