Investment-management firm Arnhold and S. Bleichroeder Advisers (ARBA) said it will vote against Entrust's proposed sale to private-equity firm Thoma Bravo -- which in April agreed to pay $1.85 a share, or $114 million, for the digital-security company. In a letter to Entrust's board, representatives of ARBA said: "We find the board's case for selling [Entrust] at this point in time unconvincing. [It] has ample cash, a sustainable and robust government line of business, and several highly regarded products with potential to add growth to the business model in the near term." ARBA's stake is 3,200,000 shares (5.2% of the total outstanding), for which it paid about $6.1 million. The firm can only vote 2 million shares, however, due to record-date restrictions. (Also see Spotlight at right.)

International
secure key sales

Sector Perform - Price 2.01 on Jan. 29
by Pacific Crest

Entrust [which secures digital identities and information for consumers, enterprises and governments in 60 countries] appears to have reached stability. Q4 revenue and EPS of $26.7 million and 4 cents were in line with our estimates [and show] solid progress...toward sustainable revenue streams (subscription revenue accounted for 51% of total)...Financial-services exposure presents a headwind...[as does]...further weakening of the dollar...[hence] we remain somewhat cautious. But at less than 2 times [enterprise value]-to-trailing-12-month maintenance revenue, ENTU is attractively valued, in our view. Market-cap: $122.8 million.

computer security company - similar to old RSAS or VDSI

IT Security Play

Internet security and verification company.

Fall from 60 to current, multiple management teams, no respect