Takeover rumors drive Mercury’s gains

Article Excerpt

MERCURY INTERACTIVE CORP. $33 (Pink Sheets Over-the-Counter market symbol MERQ; WSSF Rating: Extra risk) now trades on the Pink Sheets market, after Nasdaq removed it in January for failing to file its financial statements on time. The company is currently restating its results to correct errors related to the timing of stock options. The restatement will not change Mercury’s reported revenue, regular operating expenses or cash balances. It aims to file its new 2004 results, and 2005 first quarter results, in the next three months. The stock has gained roughly 40% since moving to the Pink Sheets, mostly due to takeover speculation. Mercury has no controlling stockholder, and its unique web site testing software would undoubtedly attract several bidders. However, potential buyers would probably prefer to wait until Mercury completes its restatements before making an offer. Mercury Interactive is still a hold for aggressive investors. investors…

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