Red Hat to Move to NYSE [TheStreet.com]
Summary: Top Linux distributor Red Hat, Inc. announced it has filed for a listing with the NYSE and will start trading on the exchange as early as December 12. The reason for the change, according to CFO Charlie Peters, is simple: "We believe that listing on the NYSE will increase Red Hat's visibility among investors, reduce trading volatility and offer more efficient pricing" versus the tech-heavy Nasdaq. The company, currently near 52-week lows due to a series of industry challenges from competitor Oracle and a recent Microsoft-Novell alliance will trade under the symbol RHT.
Related links: Press Release. Media coverage: WSJ. Commentary: Red Hat Stock Climbing Back • Red Hat: Unlikely to Recover From ORCL/MSFT One-Two Punch -- Barron's • Oracle's Linux Announcment: A Load of Bull? • Panic Exit From Red Hat Shares - Overdone? • In Recognition of New "Mixed" Software Environment, Microsoft To Work With Novell's Linux. Conference call transcripts: Red Hat F2Q07 (Qtr End 8/31/06) Earnings Call Transcript (SeekingAlpha).
Potentially impacted stocks and ETFs: Red Hat (RHAT) • Competitors: Oracle (NYSE:ORCL), Novell (NASDAQ:NOVL), Microsoft (NASDAQ:MSFT), Sun Microsystems (SUNW) • ETFs: Software HOLDRs (NYSE:SWH).
Seeking Alpha is not affiliated with TheStreet.com.