Michael Ovitz Buys Opsware on The Dips
June 21st, 2006 By: Rich Miller
Famed Hollywood power broker Michael Ovitz has been a director of Opsware (OPSW) since its launch as Loudcloud. The company has since morphed from a managed hosting provider to a data center automation software maker. But Ovitz continues to like the stock, according to InsiderScore, which notes that the former Disney president bought 100,000 shares last week after the stock pulled back from a two-year high. Since May 2005, Ovitz has spent approximately $3.2M to acquire 547,200 shares of Opsware on the open market.
InsiderScore is an insider trading data monitoring and intelligence service, and part of the FindProfit.com network of financial sites. Bill Martin, editor of investment newsletter FindProfit.com, believes that “further upside” is ahead for Opsware over the next 18 months and that analyst consensus revenue estimates for next year are “materially low.”
“Opsware’s business is continuing to gain momentum, as its business starts moving up the hockey stick growth curve, notes Bill Martin, editor of investment newsletter FindProfit.com. “First-quarter revenues were well above street estimates, and the company hiked its full-year revenue guidance. While those top-line gains have yet to benefit the bottom line, it’s for a good reason: Opsware is investing heavily in sales & marketing and product development as it tackles a significant market opportunity.”
Many long-time Internet users may remember Martin as a founder of Raging Bull, the wildly popular stock message board.