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Special Update!

posted Sep 15, 2009, 11:49 PM by Mohit Kumar   [ updated Sep 15, 2009, 11:50 PM ]
Howdy!

Breaking News!
Hurrah! Our little dynamite OMTR has exploded, the ignition being caused by Adobe! Later today, it was announced that Adobe and Omniture have entered into a definitive agreement for Adobe to acquire Omniture in a transaction valued at approximately $1.8 billion on a fully diluted equity-value basis. Under the terms of the agreement, Adobe will commence a tender offer to acquire all of the outstanding common stock of Omniture for $21.50 per share in cash. The share soared and the stock is expected to trade over $21 tomorrow taking our net returns to over 100% in less than 4 months!  Awesome! Congratulations to all OMTR shareholders! This is a great moment for our entire "Stock Buzz Now" community as it reaffirms the strength of our research and how picking quality stocks can bear fruits!

My Take
Needless to say, I am happy with the news as much for our catch at the right time as for the huge gain! But, to be frank, I think Adobe is getting OMTR at a bargain! OMTR was a potent growth stock with plenty of room to cover! I would have expected OMTR to get sold at a minimum of $25 per share.

Next Step?

Option 1
Sell it, lock the gains and open a bottle of wine! simple enough?

Option 2
Continue to HOLD the stock. Why one may ask?? Well, though the chances may be bleak, but what if some other company (say Microsoft or Ebay) place a higher bid for OMTR!! I would like to wait a bit more just in case this has to happen!

As of now, my recommendation is Option 2 and will wait to ring the final bell with a formal Sell recommendation. However, you will not be making a mistake if you go with Option 1 and sell your shares over $21 to lock a substantial profit!
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