Bullish trading of QLogic Corp. options leapt to the highest peak in the past four months in U.S. trading today. Conjecture that the corporate chips and switches supplier may soon be taken over pushed up shares to highs of $19.57 on Tuesday.
Trading of QLogic was heavy today with 22,000 calls to purchase the stock reported before closing. That is 78 times more than the month average for the Cisco competitor.
The rumors of a takeover may be just that, as many analysts don’t imagine a bid in the near future. Additionally, an announcement by rival company Cisco, boasted that their new router introduced today is 12 times faster than the nearest competitor would make it riskier to buy.
This new development; however, I negated somewhat by the fact QLogic, the largest seller of gear connecting computers with storage devices may win some of Cisco’s business after their entrance into the service market.
For 2010, Qlogic stock has gained 2.8 percent.
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