Nuance shares rose 9.71% behind the day

Tencent Technology News June 17 news, sources said on Monday, speech recognition software vendors are currently being negotiated with potential acquirers on the acquisition. Prompted by this news, Nuance shares rose 9.71% the day, the highest single-day gain in five years.

The Wall Street Journal quoted sources as saying the same day, Nuance recently with Samsung Electronics and private equity firms to negotiate the potential acquisition. For the first time, Nuance shares rose $ 1.66 on Monday, or 9.71%, the highest single-day gains since January 2009. Nuance's current largest shareholder is the radical investor, billionaire Carl Icahn.

Nuance spokesman Richard Mack and a Samsung spokesman declined to comment.

Nuance's current market capitalization of nearly 6 billion US dollars. Since Icahn opened Nuance stock in April 2013, he kept pressure on the company's management and the board of directors to require Nuance to take steps to raise shareholder value on the grounds that the company's assets were undervalued. Bloomberg's statistics show that as of March 31 this year, Icahn through its more than fund has held a total of about 19% of Nuance shares.

According to John Bright, an analyst with Avondale Partners, "When assets are undervalued, it is more likely that they will be sold abroad." The reason Amazon's shares are undervalued is manifold, not only for the company's presence in the speech recognition market The competitive position, but also includes cash flow, corporate value and other traditional data. "

Even with its share price soaring on Monday, Nuance's current share price is only about 17 times the cash flow for the next four quarters, which is cheaper than the 60% US software companies with a market capitalization of more than $ 1 billion some.

Analyst Brett believes Nuance will have a share price of $ 25 to $ 30 per share if sold outside. The analyst gave Nuance a "buy" rating.

Nuance chief executive Paul Ricci is currently looking to get the company back to growth by extending speech recognition tools to the web and mobile devices. In the past six quarters, Nuance has been unable to make a profit. By the close of last Friday, the company's share price has fallen 16% in total in the past two years.

Nuance estimated last month that the company's revenue for the quarter will be in the range of $ 488 million to $ 508 million, lower than the average of $ 527.5 million estimated by market analysts.

It is worth noting that Nuance has historically provided technical support to some of Siri's voice recognition capabilities, and if acquired by Samsung, may complicate the competitive relationship in this market. (Ming Hin)