Monday, October 02, 2006

Calls of Note Part 6

- Stanford comments on Verisign (NASDAQ:VRSN) saying that as they noted earlier on Friday, Senate Commerce Committee Chairman Ted Stevens (R-Alaska) and Ranking Democrat Daniel Inouye (D-Hawaii) wrote to the U.S. Commerce Department this morning urging it to delay approval of VeriSign's six-year extension to run the .com domain.

While the final decision still belongs to the Commerce Department, the firm believes the Senators' letter is likely to result in the Commerce Department holding off on approving VeriSign extension.

The delay could last into early 2007, when the Senate Commerce Committee plans to examine a variety of issues related to the Internet Corporation for Assigned Names and Numbers (ICANN).

At this point the firm would not expect the .com contract to be put out for competitive bids, but there could be modifications to the contract's automatic 7% rate increases and the strong renewal expectancy in 2012.

Notablecalls: Take a look at the intraday chart on VRSN from Friday and you'll see when the comments hit. Not actionable but good to know category for now.

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