Sun Microsystems (NasdaqNM: JAVA) NewsBite - JAVA-IBM Deal Reportedly Near Completion

Posted: Friday, April 03, 2009 10:03 AM EDT

Sun Microsystems (NasdaqNM: JAVA) opened at $8.49. So far today, the stock has hit a low of $8.38 and a high of $8.55. JAVA is now trading at $8.52, up $.31 (3.78%). The stock hit its 52-Week high of $16.37 in May and set its 52-Week low of $2.60 in November. A Sun-IBM (IBM) deal looks more and more likely as a rumor circulates today from an inside source that IBM would pay a lower price for JAVA in return for a stronger commitment from IBM to fight for the deal. Technical indicators for the stock are neutral and S&P gives JAVA a neutral 3 STARS (out of 5) hold ranking. If you are looking for a hedged play on JAVA the stock seems like it could be a candidate for a July out-of-the-money bull-put credit spread below the 7 range. [ABR-Seven Summits Strategic Investments NewsBite]

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