Cloud-computing stocks soared Monday in midday trading on news of SAP's $3.4 billion cash bid for SuccessFactors, and one analyst said two other companies within the sector were worth a look.
Taleo, “from a technical point of view, has certainly broken through to the upside, J.J. Kinahan, chief derivatives strategist for TD Ameritrade, said on “Fast Money.” “They seem to be one people like.”
German software powerhouse SAP traded in the $59 range, while SuccessFactors traded above $39, near it’s 52-week high of $40.44. The acquisition is expected to make SAP more competitive with Oracle.
Kinahan was also bullish on Kenexa, which was trading in the $25 range midday.
“If you’re looking for a stock that could break out, starting on a climb, that’s one I would certainly keep my eye on over the next few weeks and see what happens there,” he said.
______________________________________________________ Steve Grasso Stuart Frankel & Co. and its partners own CSCO Stuart Frankel & Co. and its partners own CUBA Stuart Frankel & Co. and its partners own GERN Stuart Frankel & Co. and its partners own GM Stuart Frankel & Co. and its partners own HPQ Stuart Frankel & Co. and its partners own HSP Stuart Frankel & Co. and its partners own HSPO Stuart Frankel & Co. and its partners own JPM Stuart Frankel & Co. and its partners own MET Stuart Frankel & Co. and its partners own MSFT Stuart Frankel & Co. and its partners own MU Stuart Frankel & Co. and its partners own NYX Stuart Frankel & Co. and its partners own PRST Stuart Frankel & Co. and its partners own RDC Stuart Frankel & Co. and its partners own UAL Stuart Frankel & Co. and its partners own WFT Stuart Frankel & Co. and its partners own XRX Patrick McKeever Thomas Lee Jens Nordvig Chris King Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services from Comcast Corporation in the next 3 months. Stifel, Nicolaus & Company, Inc. makes a market in the securities of Sprint Nextel. AT&T, Inc. is on the Stifel Nicolaus Income Opportunity Ideas List. This Income Opportunity Ideas List represents our Stifel Nicolaus analysts’ best yield ideas, however is not intended to represent a model portfolio. Each stock is on the Buy List, and offers what Stifel Nicolaus analysts believe are companies with solid fundamentals, a favorable valuation, and a current dividend higher than that of the S&P 500 Index. Stifel, Nicolaus & Company, Inc. makes a market in the securities of AT&T, Inc.. CNBC.com with wires.
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Trader disclosure: On Dec. 5, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Grasso owns AKS, AMR, ASTM, AVAV, BA, BAC, D, LIT, MHY, PFE, PRST, S, XLU; Kelly is long IWM, Kelly is long EURO, Kelly is long Italian bonds, Kelly is long KRE, Kelly is long Aussie dollars;
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Verizon Communications, Inc. is on the Stifel Nicolaus Income Opportunity Ideas List. This Income Opportunity Ideas List represents our Stifel Nicolaus analysts’ best yield ideas, however is not intended to represent a model portfolio. Each stock is on the Buy List, and offers what Stifel Nicolaus analysts believe are companies with solid fundamentals, a favorable valuation, and a current dividend higher than that of the S&P 500 Index. Stifel, Nicolaus & Company, Inc. makes a market in the securities of Verizon Communications, Inc.
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