Makeover Moves in on Aladdin
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.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV