Investors Find Route into Corvis
"Brad M", an investor in Roctest, points to extensive analysis of Roctest and Corvis that he's posted on Raging Bull's message board:
Harry Chernoff, senior economist with Science Applications International Corp. (SAIC) http://www.saic.com/, says:
Roctest didn't move from $2 to $10 on the Corvis stake. In fact, it didn't move at all in the summer of '99 when the transaction that created the Corvis stake was consummated. It only increased (from about $5.50 to $10 n February '00 when it became widely known that the sale of the Roctest subsidiary to Corvis was for Corvis stock, not cash. The stock previously moved up from a few dollars a share to the $6 range in late '99 (before falling back) when the company announced it was entering the fiber optic instrumentation business.
Other than that minor point, the article is exactly right.
Editor's note: The article has been corrected to reflect this.