“…since going public August 10 at $14, Red Hat is up well over
1,000%. …the company soared again yesterday on talk it’s looking
for additional acquisitions in the wake of its $674 million stock
deal to purchase Cygnus Solutions… A spokesperson said Red Hat
wants to build on momentum for the open source software
system.”
“Yesterday the talk swirled around Ottawa, Canada-based Corel
(Nasdaq: CORL), a company that develops software for the Linux
operating system. Last Friday, Interactive Week Online
speculated that Red Hat might make a pitch for Corel to improve its
ability to work on desktops.”
“…Red Hat didn’t gain $23 yesterday on talk about buying
Corel… Rather, investors are bidding up shares in the belief
that Red Hat will continue to expand its reach beyond the
enterprise server market to all areas — desktops, small devices,
and Internet appliances — and that by doing so it will become
a legitimate contender to Microsoft (Nasdaq: MSFT).”