Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Riverbed Technology, jumped 16% Friday after activist investor Elliot Associates disclosed it has obtained a 9% stake in the wide area network specialist and will push it to find ways to increase shareholder value.

So what: Specifically, Elliot Associates stated it believes Riverbed Technology stock is "significantly undervalued," especially considering Riverbed possesses "extremely loyal customers" and "occupies a mission-critical position in thousands of networks." What's more, Elliot believes Riverbed should implement a strategic review to decide how to best optimize its operations and capital structure in a way that maximize shareholder returns.


Now what: Riverbed Technology, for its part, elaborated further in a subsequent SEC Filing, saying "Elliott believes that these initiatives will prudently, but significantly, provide a meaningful increase to the company's valuation. We have detailed these observations to the Board of Directors of [Riverbed] and look forward to a constructive dialogue."

Got iPad?
Apple's newest iPad Mini with Retina display might be hard to come by this quarter, given all the reports of supply constraints. Well, we're going to be sure to get a few -- and give them away! That's right: For the first time ever, The Motley Fool is hosting a contest where you can win a free iPad Mini with Retina display. All you have to do is tell us why you love The Motley Fool by clicking here! We'll pick the three most Foolish submissions to receive a free iPad Mini with Retina display.

See full terms and conditions by clicking here

The article Why Riverbed Technology, Inc. Shares Soared originally appeared on Fool.com.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of Riverbed Technology. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Understanding Stock Market Indexes

What does it mean when people say "the market is up 2%"?

View Course »

Reading a Stock Quote

Learn to read the ingredients of a stock.

View Course »

Add a Comment

*0 / 3000 Character Maximum