What: Shares of Internet infrastructure services specialist VeriSign
So what: VeriSign shares had been rallying sharply this week on heavy takeover speculation, but the news pours a big bucket of cold water on those rumors. In fact, today's pullback marks the biggest loss VeriSign shareholders have felt in nearly nine months.
Now what: I wouldn't be so quick to pounce on this plunge. Without the glowing prospects of a buyout-fueled short-term bump, its price-to-sales multiple of eight seems just too high to take a chance on. While VeriSign's fundamentals are certainly decent enough, management is changing just too rapidly for me to make a confident long-term bet.
Interested in more info on VeriSign? Add it to your watchlist.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.