24/7 Wall St. » ALDN

Aladdin Comes Clean, Addresses Merger Reports (ALDN)

247wallst — Wed, 07 Jan 2009 07:15:43 +0000

We reported yesterday that Israeli-data and IT security firm Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) was up sharply higher on reports that its old merger offer "may" be developing again. The company has issued a response, and it seems that there are still more questions and opportunity for skepticism than there are any solid answers.

The company just noted:

In response to a January 6th article published in the Israeli Newspaper“The Marker” and other media reports, Aladdin announced that it iscontinuing discussions with Jasmine Holdco regarding a possiblestrategic transaction. There can be no assurance that a definitivetransaction between Aladdin and Jasmine can be negotiated or the timingor terms of any such transaction.

Aladdin and Jasmine have extended the previously announced standstillagreement, which originally expired on October 30, 2008, during thependency of these negotiations.

Aladdin intends to make a further announcement upon the execution ofany definitive agreement with Jasmine or the termination ofnegotiations with Jasmine.

We would urge you to consider that the old $13.00 was one which wasrebuffed. If the new weak economy changes management’s opinion on a"true value" then something might be possible. But….

Shares rose about 37% to $9.62 yesterday. There has been no pre-marketvolume, but it looks like early indications are showing shares slightlylower.

Jon C. Ogg
January 7, 2009

Posted in ADR, Mergers and Buy Outs, Rumors Tagged: ALDN

Aladdin In Play? (ALDN)

247wallst — Tue, 06 Jan 2009 12:09:30 +0000

Aladdin Knowledge Systems Ltd. (NYSE: ALDN) shares have risen sharply on new reports that the Israeli data security software provider was close to receiving a buyout offer from a Vector Capital Group affiliate. Israel’s ‘TheMarker’ financial news Web site reported a new offer from Vector’s Jasmine Holdco LLC in the works. This wouldn’t exactly be the first dance for this company, and if it does not come to pass it will not be the first disappointment.

Keep in mind that an original offer of $13.00 was given last year and Aladdin said the offer was opportunistic and undervalued the company.

Shares are up almost 30% at $9.00 on the reports. Even if an offer comes, it will likely have to come at a substantial premium since its 52-week trading range is $5.85 to $24.23.

Jon C. Ogg
January 6, 2009

Posted in ADR, Mergers and Buy Outs, Rumors, Software Tagged: ALDN

Day Trader Alert: Aladdin Knowledge Systems (ALDN)

247wallst — Thu, 16 Oct 2008 08:26:21 +0000

Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) is seeing shares surge in pre-market trading, albeit on rather thin volume. The data security company posted much narrower losses than expected with a report of -$0.02 EPS on $31.7 million in revenues, while First Call estimates were -$0.21 EPS on $29.9 million in revenues. The company now sees fiscal 2008 earnings at $0.04 to $0.10 EPS rather than the estimates for the company to break even. We have only seen about 6,800 shares trade pre-market but the last print was at $11.00 after a $9.43 close yesterday. This is setting the stage for a bounce as the 52-week low is $8.29 and the 52-week high is $26.94. Average daily volume is about 120,000 shares. The stock does have options, although they are thinly traded.

Jon C. Ogg
October 16, 2008

Posted in Earnings, Software Tagged: ALDN

Aladdin & Vector Capital, Another Questionable Deal (ALDN, CREL, CAPA)

247wallst — Wed, 20 Aug 2008 11:54:30 +0000

Aladdin Knowledge Systems (NASDAQ: ALDN) has confirmed that it received a confidential and unsolicited proposal from private equity firm Vector Capital to acquire the company. The company notes that Vector’s proposal includes a potential alternative transaction with Vector’s purchase of Aladdin’s DRM business…. "potentially combined with a repurchase by Aladdin of the shares of Aladdin purchased by Vector Capital, and the sale by SafeNet, Inc., a Vector affiliate, of its authentication business to Aladdin." What is very interesting is that while this would be a small deal, you can see below how this deal will come under question by many just as fast as it was announced.

Vector Capital’s SafeNet is a direct competitor of Aladdin. Aladdinsaid its Board of Directors is reviewing the proposal in consultationwith independent advisors and will inform Aladdin’s stockholders of itsposition.

The company also said it is committed to enhancing shareholder valueand is continuing to implement its strategic plan. It noted thisincludes organic growth as well as complementary acquisitions, two ofwhich were announced this past month to strengthen its portfolio of ITsecurity offerings and increase our global brand recognition. CreditSuisse is serving as financial advisors to Aladdin, while Kramer LevinNaftalis & Frankel LLP is serving as U.S. legal counsel; andHerzog, Fox & Ne’eman is serving as Israeli counsel to Aladdin.

The company has not said at what price the offer came in at nor givenany hint of what the alternative transaction terms would be. Shareswere halted ta $11.53 before being halted, and the 52-week tradingrange is $8.29 to $26.94. Its market cap based upon the halt price is$160 million.

If Vector Capital sounds familiar, it is the same one who recently wasinvolved with the Corel (NASDAQ: CREL) acquisition which was just called off. We’d also note that Vector Capital had also attempted toacquire Captaris, Inc. (NASDAQ: CAPA), which also didn’t go through.

Whether or not this occurs is subject to what the companies and holders decide, so we don’t want to imply that this cannot happen. Just keep in mind that an initial offer with unknown terms isn’t an a sure bet.

JON C. OGG
August 20, 2008

The 52-Week Low Club (NCC)(PFE)(ALDN)(CRBC)

247wallst — Mon, 21 Apr 2008 14:41:06 +0000

National City Corporation (NCC) Raising money and big dilution. Falls to $5.90 from 52-week high of $38.32.

Pfizer (PFE) Concerns about big pharma results. Drifts off to $20.13. $27.73.

Aladdin Knowledge Systems (ALDN) Bad earnings. Down to $15.60 from 52-week high of $26.94.

Citizens Banking (CRBC) Downgrade, weak earnings. Sells off to $10.11 from 52-week high of $21.72.

Douglas A. McIntyre

Pre-Market Analyst Calls (June 5, 2007)

247wallst — Tue, 05 Jun 2007 06:37:56 +0000

AAP raised to Neutral at JPMorgan.
ALDN cut to Mkt Perform at FBR.
ALY started as Outperform at Wachovia.
BEBE cut to Mkt Perform at FBR.
BEN cut to Underweight at JPMorgan.
BHP raised to Buy at Citigroup.
CPO started as Buy at BB&T.
CRZO started as Buy at Sun Trust Robinson Humphrey.
FIF raised to Outperform at Piper Jaffray.
HAS cut to Underweight at JPMorgan.
JNPR cut to Neutral at UBS.
OCNF started as Buy at Cantor Fitzgerald.
OHI started as Neutral at UBS.
OPWV cut to Underweight at JPMorgan; cut to Underperform at CIBC.
ORBC started as Mkt Perform at Piper Jaffray.
REG started as Neutral at Baird.
SFLY started as Strong Buy at JMP Securities.
SWIR raised to Outperform at CIBC.
SLR raised to Neutral at Credit Suisse.
TELK cut to Mkt Perform at Wachovia.
TRMP cut to Underperform at Bear Stearns.
WRI started as Outperform at Baird.
XEC cut to Neutral at UBS.

Jon C. Ogg
June 5, 2007