For Immediate Release

Chicago, IL – November 18, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Cisco System Inc. (CSCO), Logitech International SA (LOGI), Hewlett-Packard Company (HPQ), 3Com Corp. (COMS) and Citrix Systems Inc. (CTXS).

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Here are highlights from Tuesday’s Analyst Blog:

M&A in Videoconferencing Market

Merger and acquisition activities are heating up in the unified collaborative solutions market that provides videoconferencing. Prompted by the severe economic downturn, business enterprises on a global basis are restricting travel budgets to control costs. This makes high-definition telepresence solutions a cost-induced alternative in an increasingly interactive world. This market stands to gain in the near future since enterprises, governments, and educational institutions are increasingly recognizing the productivity-enhancing benefits of video conferencing.

Yesterday, Cisco System Inc. (CSCO) raised its acquisition price to $3.41 billion for Tandberg ASA, the largest videoconferencing product maker in the world with around 35% market share. Cisco itself is a developer of high-end videoconferencing solutions, which mainly comprises custom-designed digital boardrooms for executives and boards to hold global meetings. The merged entity will definitely be a much bigger player in the industry. On Nov 10, computer accessories maker Logitech International SA (LOGI) announced that the company will purchase privately held LifeSize Communications Inc, a developer of high-end high-definition videoconferencing gear for $405 million.

Hewlett-Packard Company (HPQ) another major player in this field has decided to acquire 3Com Corp. (COMS) for $2.7 billion. This acquisition will strengthen Hewlett-Packard’s videoconferencing solutions beside its IP-based data center related solutions. Virtual desktop maker Citrix Systems Inc. (CTXS) has recently strengthened its web conferencing solutions by adding integrated toll-free audio services for its GoToMeeting Corporate and GoToWebinar product-lines.

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Zacks Investment Research

Merger and acquisition activities are heating up in the unified collaborative solutions market that provides videoconferencing. Prompted by the severe economic downturn, business enterprises on a global basis are restricting travel budgets to control costs. This makes high-definition telepresence solutions a cost-induced alternative in an increasingly interactive world. This market stands to gain in the [...]

(CSCO) Merger and Acquisition in Videoconferencing Market

Merger and acquisition activities are heating up in the unified collaborative solutions market that provides videoconferencing. Prompted by the severe economic downturn, business enterprises on a global basis are restricting travel budgets to control costs. This makes high-definition telepresence solutions a cost-induced alternative in an increasingly interactive world. This market stands to gain in the near future since enterprises, governments, and educational institutions are increasingly recognizing the productivity-enhancing benefits of video conferencing.

Yesterday, Cisco System Inc. (CSCO) raised its acquisition price to $3.41 billion for Tandberg ASA, the largest videoconferencing product maker in the world with around 35% market share. Cisco itself is a developer of high-end videoconferencing solutions, which mainly comprises custom-designed digital boardrooms for executives and boards to hold global meetings. The merged entity will definitely be a much bigger player in the industry. On Nov 10, computer accessories maker Logitech International SA (LOGI) announced that the company will purchase privately held LifeSize Communications Inc, a developer of high-end high-definition videoconferencing gear for $405 million.

Hewlett-Packard Company (HPQ) another major player in this field has decided to acquire 3Com Corp. (COMS) for $2.7 billion. This acquisition will strengthen Hewlett-Packard’s videoconferencing solutions beside its IP-based data center related solutions. Virtual desktop maker Citrix Systems Inc. (CTXS) has recently strengthened its web conferencing solutions by adding integrated toll-free audio services for its GoToMeeting Corporate and GoToWebinar product-lines.

As of now, Polycom Inc. (PLCM), the second largest videoconferencing solutions developer in the world with an estimated 30% market share, remains the only pure play unified collaborative solutions provider which is yet to collaborate with another company. To cope with the competitive threat, Polycom has decided to strengthen its existing business agreements with leading original equipment manufacturers (OEMs) and resellers in the telecom industry.

We believe, in the long-run, the videoconferencing solutions market will see healthy demand as a result of several positive industry trends, including globalization and the proliferation of branch offices; concerns about time demand and high cost of travel; homeland security and other government initiatives; as well as distance learning and healthcare applications. According to Gartner Inc, the video conferencing market will grow at a CAGR (compound annual growth rate) of 17.8% between 2008 and 2013, rising from $3.8 billion to reach $8.6 billion.
Read the full analyst report on "CSCO"
Read the full analyst report on "LOGI"
Read the full analyst report on "COMS"
Read the full analyst report on "CTXS"
Read the full analyst report on "HPQ"
Read the full analyst report on "PLCM"
Zacks Investment Research

Today’s tickers: PG, CTXS, LINTA, HIG, CVS, UUP, VIX, AONE, SWKS, CLX, BCSI & NVDA

PG - The Proctor & Gamble Co. – Bullish action on Proctor & Gamble today suggests one investor expects shares to continue to rally ahead of expiration in November. Shares are currently trading 1% higher to $61.13. The trader purchased 10,000 calls at the now in-the-money November 60 strike for 1.39 each, and simultaneously sold 10,000 calls at the higher November 62.5 strike for 26 cents apiece. The net cost of buying the call spread amounts to 1.13 per contract and yields maximum potential profits of 1.37 each if shares rally up to $62.50 by expiration. Shares need only rally another 2.2% from the current price to reach the $62.50-level.

CTXS - Citrix Systems, Inc. – Software developer, Citrix Systems, attracted bullish option traders to the November contract today amid a 1% increase in shares to $38.80. Investors displayed optimistic sentiment on the stock by selling approximately 10,600 puts at the November 35 strike for 10 cents premium apiece. Put-sellers retain the full dime-per-contract as long as shares remain above $35.00 through expiration this month. Shares of CTXS have traded above $36.00 since September 4, 2009.

LINTA - Liberty Media Corp. – Shares of the broadcasting and entertainment company rallied 1% during the trading session to $12.14. Plain-vanilla call buying action on the stock today suggests some investors expect shares to rise significantly by expiration in January 2010. Traders purchased about 11,800 calls at the January 15 strike for an average premium of 25 cents apiece. Call-buyers will accumulate profits if shares surge at least 26% from the current price to surpass the breakeven point at $15.25 by expiration.

HIG - Hartford Financial Services Group, Inc. – Medium-term investors placed bearish bets on the insurance and financial services firm today. Shares are currently trading less than 0.25% higher to $24.16 after suffering significant erosion throughout the week. One pessimistic trader initiated a bearish risk reversal in the January 2010 contract. The investor sold 4,500 calls at the January 27 strike for an average premium of 78 cents apiece to partially finance the purchase of the same number of put options at the lower January 21 strike for 1.68 each. The net cost of the transaction is reduced to a more palatable 90 cents per contract, but does leave the investor exposed in the event of a rally of more than 11.7% by expiration…

Staples firm – Proctor & Gamble options suggest further upside. Dollar index bull fund call options continue to attract attention[More...]