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Wednesday, September 22, 2010

Fortinet a takeover target

Shares of Fortinet are riding the consolidation of the networking security business. First, the $7.7 billion takeover of McAfee by Intel, then the $1.5 billion takeout of ArcSight by Hewlett-Packard . Such merger and acquisition news is helping boost Fortinet's stock price. Additionally, Fortinet is generating very strong sales growth which is another positive factor for the stock.

The Street, run by Jim Cramer, said that Fortinet could be the next takeover target for the likes of an IBM, HP, or Oracle.

Also keep an eye on Ciena which bought Nortel Network's optical business for dirt cheap and is now making tons of money. Ciena shares are up 22% since performance in the June quarter beat expectations.

Shares of JDSU are also riding up the group of network stocks. Their shares are up a whopping 35% month to date.

The entire networking security business is on fire. Stay tuned for further takeover news.