3PAR (PAR) : Dell to acquire 3PAR

The headline says it all.

Dell Inc. said Monday it plans to purchase data-storage company 3PAR Inc. for about $1.15 billion in cash, as the personal-computer maker seeks to boost its offerings for corporate technology departments.

Dell will pay $18 a share for 3PAR, an 86.5% premium to the Fremont, Calif.-based company’s Friday closing price of $9.65.

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Firstly, congrats to 3PAR. Storage is a tough market. Hopefully, with DELL as its backing, it can go further and go up against the likes of EMC.

The storage industry has continue to consolidate including the recent Oracle acquisition of SUN.

Without strong backing, it will take  a long time for 3PAR to build up the channels and replace the incumbent.

On the trading front, it has been a miss for me. I have wanted to buy some shares of 3PAR with this market correction.

Guess, DELL knows that this is a good time to buy (seeing that 3PAR’s shares is not going to move ahead much).

I think this is a good move on DELL’s part. Hopefully, the management can work together and provide alternatives to the industry.


3PAR Inc (PAR) : Kumo resistance for 3PAR

A follow up on my previous post on 3PAR.

What happens after the gap resistance?

1. 3PAR move up very quickly when it break through the gap resistance; it could be a short squeeze or just speculators trying to front run as 3PAR’s management is on the road with its various presentation at conferences.

2. Nonetheless, as ‘Zoltan’ has suggested, 3PAR hit the huge kumo resistance and is now forming a flag

What’s next? From the Ichimoku chart,

1. The first support is around 10.0 to 10.1, where the previous gap is. That is also where the Kijun sen is.


3PAR Inc. (PAR) : Gap Resistance at 9.67

On the Ichimoku chart, 3PAR (PAR) manage to touch the resistance level at 9.67

This is a nice level to watch as we can see the following from the chart:

1. Tenkan sen has started to turn up and the price level is above it; suggest that the short term uptrend may have started