This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Makeover Moves in on Aladdin

Trillion-dollar hedge fund BlackRock (BLK) has been quietly amassing shares of the Israel-based security software maker Aladdin (ALDN), reaching a 13.5% ownership stake during the third quarter.

While such a move hardly inches the dial at a colossal fund, for the average investor, BlackRock stock picks are often seen as buy signals.

However, traders have yet to fully embrace the stock, which has slowly started to recover lost ground after tumbling from nearly $24 to below $14 in a two-month period. The stock closed Thursday at $17.61.

Aladdin, which is considered a market leader in the software digital rights management (DRM) industry, makes software products and UBS security tokens that prevent unauthorized use of software, and protect copyrights and intellectual property.

Over the past few quarters, the company's revenue sank as sales of its major DRM operation slowed and a secondary offering tanked. Many analysts claim an unstable management is a big part of the reason for slowing sales rather than a slowdown in demand -- a perception which could indicate that BlackRock intends to intervene with a possible management shakeup.

Early in 2005, the company conducted a secondary offering of 2 million shares at about $21 each. A number of institutional investors, including Fidelity Management & Research and Tracer Capital Management took significant interests, hoping perhaps for a rapid growth opportunity. But the security failed to rise to the expectations.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,594.23 +194.56 1.19%
S&P 500 1,936.16 +32.15 1.69%
NASDAQ 4,408.55 +92.4760 2.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs