It's cheap for a reason
at 2006-03-22 12:07:04
EXTR has been one of the cheapest networking stocks for a while, trading below 1x EV/Sales for some time. Trading in a range between $4 and $5ish for almost a year. EXTR has seen nice improvements in revenues for last few quarters, improving gross margins, better operating margin and even some buy-backs but the stock gets little respect. Today EXTR reported revenues that missed its own guidance.
Personal note
at 2006-03-22 12:07:04
Apologies to my regular readers for the long hiatus, my posts should pick up in frequency again. Also, want to thank Forbes for mentioning this site as one of the top Investment Blogs on the web.
Is JNPR calling?
at 2006-03-22 12:07:04
JNPR, as we all know by now, missed consensus estimates for the first time in last two years; resulting in a nice 21% hair-cut to the market cap. JNPR has been plagued by the acquisitionmania- acquiring five companies in last two years, starting with NetScreen and the most recent Funk Software. Recent acquisitions of Redline, Kagoor and Peribit contribued no growth during the quarter- that's
Coat of Blues
at 2006-03-22 12:07:04
BCSI pre-announced negatively this morning and the market cap took a 39% haircut; given that BCSI is one of the high-flying high expectations/high multiple stock. Company provided absolutely no details regarding the miss (that never helps in negative pre-announcements)
The really interesting educational lesson coming out of this pre-announcement was the importance of leverage. BCSI had
Looking out for The Few
at 2006-03-22 12:07:04
On February 8th the Board of Directors of EXTR approved an Executive Change in Control Severance Plan. The filing with the SEC was made yesterday right after the close of market. What this severance plan entails is a nice pay out for the executives and certain VPs upon change in control of EXTR. The board does not plan to do anything specific for the ordinary shareholders except for "maximizing
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