Symantec’s possible takeover just adds appeal for investors

Article Excerpt

Symantec is a stock many of you already hold. It operates in the red-hot cyber security field, serving both businesses and consumers. However, both those markets are highly competitive, and the company’s missteps over the last few years have held back its stock. That weakness has also left it wide open to takeover bids, and two offers are likely unfolding right now. Still, even without a takeover, we think Symantec’s shares have strong recovery potential. SYMANTEC CORP., $23.50, is a buy. The company (Nasdaq symbol SYMC; TSINetwork Rating: Average) (www.symantec.com; Shares outstanding: 617.5 million; Market cap: $14.5 billion; Dividend yield 1.3%) sells computer antivirus and email-filtering software. Symantec has had its share of difficulties in recent years, including widening competition, the abrupt departure of its CEO and a financial investigation that ended with restated earnings. Activist investor Starboard Value has also won three seats on the board of directors. We’ll say more in coming issues on the proposed sale of its Enterprise Security business…

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