Extreme Presentation

So far so good on Extreme Networks (Nasdaq: EXTR). We’re up about 6% since I recommended it last week.

Yesterday, CFO Bob Corey gave a presentation at the Kaufman Brothers 13th Annual Investor Conference. For a good summary of the business, click here to view the presentation.

Ramius, the activist in Extreme, has been busy lately. It recently upped its bid for Cypress Bioscience (Nasdaq: CYPB), offering a 70% premium to where the stock was before its original bid.

Now, I don’t necessarily expect Ramius to make a bid for Extreme. But this shows that these guys put their money where their mouths are. I do expect them to buy more shares of the company as soon as they’re permitted.

Ramius wants to eventually have a 9.9% stake in Extreme. It currently owns 5.6%.

Extreme’s management enacted a plan to limit the number of shares any investor could own. The Board of Directors said it’s currently evaluating Ramius’ request to amend that plan, so that it and other shareholders can take larger positions.

Aviat Rated a “Buy”

Staying with the networking theme today, Aviat Networks (Nasdaq: AVNW) was started with a “Buy” rating today at Hudson Securities. The analyst called Aviat a “turnaround” idea in a high-growth market. He also expressed confidence that new CEO Chuck Kissner (who ran the company once before) will be successful in restructuring efforts.

The analyst has a price target of $6.50.

I have to be honest with you. I’ve never heard of Hudson Securities, but I agree with the analyst’s opinion and think his price target is reasonable.

Hoping your longs go up and your shorts go down,

Marc Lichtenfeld

Takeover Target Portfolio

Stock: Extreme Networks (Nasdaq: EXTR)
Recommended Date: 9/8/10
Recommended Price: $3
Current Price: $3.19
Comments: Buy for $3 or less. Sell stop is $2.25.

Stock: Aviat Networks (Nasdaq: AVNW)
Recommended Date: 8/19/10
Recommended Price: $4.15
Current Price: $4.10
Comments: Buy up to $4.25. Sell stop is $3.

Stock: Charles River Laboratories (NYSE: CRL)
Recommended Date: 7/12/10
Recommended Price: $34.50
Current Price: $30.10
Comments: Hold. Sell stop is $27.

Stock: Applied Signal Technology (Nasdaq: APSG)
Recommended Date: 7/8/2010
Recommended Price: $20.01
Current Price: $22.58
Comments: Buy for $20.50 or less. Sell stop is $14.50.

Stock: Endologix (Nasdaq: ELGX)
Recommended Date: 6/14/2010
Recommended Price: $5.00
Current Price: $4.49
Comments: Buy for $5 or less. Sell stop is $3.25.

Stock: Qiagen (NYSE: QGEN)
Recommended Date: 3/25/2010
Recommended Price: $23.19
Current Price: $19.02
Comments: Hold. Sell stop is $17.50.