What: Shares of Internet infrastructure services specialist VeriSign (NAS: VRSN) sank 12% Friday after it announced the departure of CFO Brian Robbins.
So what: VeriSign shares had been rallying sharply this week on heavy takeover speculation, but the news pours a big bucket of cold water on those rumors. In fact, today's pullback marks the biggest loss VeriSign shareholders have felt in nearly nine months.
Now what: I wouldn't be so quick to pounce on this plunge. Without the glowing prospects of a buyout-fueled short-term bump, its price-to-sales multiple of eight seems just too high to take a chance on. While VeriSign's fundamentals are certainly decent enough, management is changing just too rapidly for me to make a confident long-term bet.
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