Stock Watch: Climbs on Red Hat Deal

Shares of online software retailer (Nasdaq: BYND) rocketed 24.5 percent on Tuesday, climbing 1-9/16 to 7-15/16 after the company announced that it has been selected by Red Hat (Nasdaq: RHAT) to resell Red Hat Linux software and services., which has contracts to sell software to the government, is the first Red Hat certified reseller to provide Linux software and services to the U.S. government.

Prior to Tuesday’s announcement, stock was trading near a 52-week low. While the news about Red Hat raises awareness of as a business-to-business play, investors might want to take a closer look at the company before getting excited., whose stock traded as high as 37 last year, is struggling. The company announced two weeks ago that it expects to report sales of $34 million to $35 million — compared to analysts’ estimates of about $50 million — and there are concerns that the company will have major cash-flow problems before it can fully capitalize on its B2B strategy.

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