Shares of Pivotal (Nasdaq: PVTL), which develops customer relationship management solutions for e-commerce business, rocketed 64.5 percent, gaining 13-5/8 to an all-time closing high of 34-3/4 after the company announced that its products have been selected by Microsoft and Cisco for their new Internet Application Hosting program. This program provides end-to-end solutions for Applications Service Providers. What this means is that the program is a solutions provider for solutions providers.
Pivotal’s alliance with Microsoft and Cisco should greatly expand its customer base. Pivotal’s customers already include industry leaders such as Yahoo!, [email protected], Lucent Technologies and Hewlett-Packard.
Another reason to watch this stock is that Pivotal is in a sizzling sector. Last Monday, Nortel Networks agreed to buy Pivotal competitor Clarify for $2.1 billion in stock. That represented a premium of more than 50 percent for Clarify’s shareholders.