Emulex Climbing Back Up As We Lock It Back Down.


ELX up sharply on rumors it is considering a strategic transaction.

After struggling this year, Emulex Corp. shares are up over 15% today, as of this writing.  There seem to be rumors that Emulex has hired bankers to pursue “strategic alternatives.”

Earlier this year, Elliott Associates began to take interest in Emulex, which led us to say:

“This may be a long-term play, but it is going in our Opps Tracker.  We are looking forward to how Elliott Associates’ strategy plays out.”

Feeling smug, about a week later we said:

“On January 22, we published our initial report on Emulex Corp. (ELX) and added it to the Underdisclosed Opps Tracker at $7.41.  Our thesis had more to do with Emulex as a strategic target of Elliott Associates than any type of fundamental analysis.”

It looks like Emulex is feeling the presence of Paul Singer and Elliott Associates and is making moves to try to increase shareholder value.

We locked down our Opps Tracker price at $7.60, and ELX is trading around $7.70 as of this writing.  We may adjust our lock-in price again today.  We are feeling smug again.

See our coverage of Emulex here and here.

As always, Lock It Down, Just Like Fast & Furious

This entry was posted in Activist Investor, Business Strategy, Elliott Associates, Hedge Funds and tagged , , , , , , . Bookmark the permalink.

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