Tech Stocks in Motion
Updated from 1:36 p.m. EST
Shares of Perot Systems (PER) were among technology's losers Tuesday, falling 15.1% after the information technology services company said that it lost its Harvard Pilgrim Health Care contract.
Perot Systems said Harvard Pilgrim would replace Perot's transaction processing platform with a new system provided by UnitedHealth Group. The new system, which is expected to be phased in during the next three years, is not expected to have a material impact on Perot's financial results during the next 15 months, it said. According to Perot, Harvard Pilgrim currently represents about 5.5% of Perot's sales and gross profit. Finally, Perot said that it is entitled to a break-up fee associated with the cancellation of the contract. The amount of the fee, which should be finalized during the next several months, is expected to be material and realized in 2006. Shares traded down $2.27 to $12.75.
Sina (SINA) rose 11% after Shanda Interactive Entertainment (SNDA) disclosed that it acquired 19.5% of Sina through open-market stock purchases. Shanda, which made the disclosure in a regulatory filing, said that it acquired the shares for "strategic investment purposes with the intention of acquiring a substantial ownership position" in Sina. In connection with the investment, Shanda also said that it may "engage in discussions" with Sina to explore the possibility of a merger.In response to Shanda's regulatory filing, Sina adopted a shareholder rights plan, also known as a "poison pill," that would become exercisable if a person or group obtains 10% or more of the company's shares or if Shanda acquires an additional 0.5% of its shares. The triggering of the shareholder rights plan would result in an increase in shares and give rights holders the ability to buy Sina shares at half price. Shares of Sina traded up $2.82 to $28.42. Shanda traded down 19 cents to $29.82.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV