Ashraf Eassa
Long/short equity, contrarian, independent research, tech

FalconStor's Up For Sale, But Are There Any Buyers?

FalconStor (NASDAQ:FALC) is a firm whose primary business is disk-based data protection. At first glance, things looked troubling: its founder and CEO ReiJane Huai was ousted (and shortly thereafter committed suicide) following accusations that the firm bribed executives at JP Morgan Chase (NYSE:JPM) with restricted stock shares and golf memberships in exchange for contracts (FalconStor admitted no wrongdoing, but paid $5.8M in a settlement). Add to that the firm's troubling sales and profitability trends, and you get a company that saw it in the best interests of its shareholders to hire Wells Fargo (NYSE:WFC) to help it explore "strategic alternatves". FalconStor is up for sale, but are there any buyers?

The Cloud...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details