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

FalconStor's CEO Resignation Likely Means Further Downside Ahead

FalconStor (NASDAQ:FALC) is a name that I have recently profiled as a struggling firm up for sale following a series of unfortunate developments. I questioned whether there would be any interested parties, particularly as the company's core business appears to be in long-term secular decline. Now, on July 1st, the firm's CEO Jim McNiel resigned to "pursue other opportunities". This is unfortunate news and has significant implications for investors speculating on a buyout.

Did FalconStor Blow It Back In 2007?

In 2007, when shares of FalconStor traded north of $13/share, it was widely rumored that [[IBM]] would be interested in acquiring the firm. While neither company ever officially commented on these acquisition talks, where there's smoke there's...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
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