We got a product update from an Autonomy sales engineer this week and I thought I would check out their stock price before he arrived. Not too many stock charts look like this right now; Autonomy has been rallying since October.
So I went into Street Pulse to see who had said what when about Autonomy. While there hadn’t been a lot of coverage, everything was extremely positive. On October 17 Whit Andrews of Gartner Research wrote about the “Oracle will buy Autonomy” rumor:
Oracle Will Buy Autonomy? I think this rumor makes a lot of sense. Oracle would benefit from the kind of exceptional technological vision that Autonomy offers, and the charisma Autonomy CEO Mike Lynch brings would elevate Oracle substantially in a variety of fields. I can’t help thinking that the money crisis will make Autonomy’s software attractive to a lot of irritable boards, and that raises a real possibility for a nicely accretive buyout. Oracle’s and Autonomy’s cultures would match in many ways, as both vendors seek opportunity vigorously. Autonomy would be a really expensive acquisition, but Oracle doesn’t seem to mind that sort of thing. That said, both companies regular indicate they have no idea where this rumor comes from, even though it keeps coming back.
Finally, there was a comment by Morgan Stanley analyst James Dawson in a CNNMoney article titled The Stock to Buy When Regulators Call. The article, published on November 19, raved about Autonomy’s opportunities given the increased regulatory oversight expected in the wake of the financial crisis.
“We see Autonomy as a long term leader,” Morgan Stanley Europe analyst James Dawson said in a report following the company’s third quarter earnings call Oct. 15. Dawson estimates that earnings per share will grow 35% in “a tough year in 2009” for public companies generally. “This business has stronger fundamentals than others we cover,” wrote Dawson, who has a buy rating on the stock.
In this instance the views of a sell-side analyst and two industry analysts were aligned and presaged a big jump in the stock price. This illustrates the value of bringing as many reputable voices together in one place, which is the goal of Alacra’s Street Pulse.