A Petering-Out in Brocade? (BRCD, DELL, HPQ, PAR, CSCO)

Posted in General 
September 8th, 2010

Seven days is enough… Maybe. That is what traders decided today in Brocade Communications Systems, Inc. (NASDAQ: BRCD).  With all of the Dell Inc. (NASDAQ: DELL) and Hewlett-Packard Co. (NYSE: HPQ) action in the 3PAR, Inc. (NYSE: PAR) from the bidding war, Brocade has been thought of as one of the GO-TO takeover names.  After all, this is networking and storage that would allow any buyer to have a lower-cost provider jump to protect its datacenter business revenues from Cisco Systems Inc. (NASDAQ: CSCO).

The price to beat today was $5.92, but was not meant to be.  Shares opened up at $5.97 Wednesday for nearly a 1% gain and the high was up 2% at $6.04 on an intraday basis.  That was short-lived and every round of buying was met with sellers taking profits with shares closing down 0.8% at $5.87.  The trading volume was 18.4 million shares, still above average but not on average with the last four days.  Here is hoe Brocade has traded of late, with today breaking that seventh straight gain:

Date Open High Low Close Volume Adj Close*
Sep 7, 2010 5.57 5.98 5.50 5.92 34,064,900 5.92
Sep 3, 2010 5.68 5.74 5.50 5.61 18,414,200 5.61
Sep 2, 2010 5.31 5.64 5.27 5.60 35,649,100 5.60
Sep 1, 2010 5.06 5.32 4.99 5.19 22,469,300 5.19
Aug 31, 2010 5.01 5.06 4.97 5.02 10,458,900 5.02
Aug 30, 2010 4.88 4.98 4.86 4.98 14,336,900 4.98
Aug 27, 2010 4.88 4.91 4.75 4.85 14,248,800 4.85
Aug 26, 2010 4.83 4.92 4.76 4.76 7,595,800 4.76
Aug 25, 2010 4.66 4.81 4.65 4.79 6,864,800 4.79

JON C. OGG

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