SELL: Symantec Corporation (SYMC)
From Sound Advice
Updated from Wall Street’s Best Investments 796, August 16, 2017
Symantec (SYMC) has been volatile recently, climbing in early July on the news of a potential sale to Broadcom and then dropping when discussions halted. President Trump also tried to block the effort on national security grounds, citing how the acquisition could interfere with competition in developing 5G wireless network technologies.
This morning, SYMC is back up again, by more than 10%, and close to the peak reached at the last round of talks. Today’s news is that Broadcom is buying Symantec’s Enterprise Security segment for $10 billion. This is Symantec’s segment that serves businesses and accounts for roughly half of the company’s annual revenue. Without its business segment, we believe that Symantec’s upside growth is limited. Moreover, there is a chance the deal could fall apart again, in which case the stock will drop, as it did the last time the previous talks stalled.
Sell SYMC.
Gray Cardiff, Sound Advice, www.soundadvice-newsletter.com, 800-825-7007, August 2019