VeriSign Shares Plunged: What You Need to Know
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.
Interested in more info onVeriSign?Add it to your watchlist.
At the time this article was published We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.