Stockchase Opinions

Mike S. Newton, CIM FCSI F5 Networks FFIV-Q TOP PICK Dec 01, 2010

Networking. $8 million market cap. Earnings continued to surprise 6 straight quarters. Rumoured as a takeover play.
$138.960

Stock price when the opinion was issued

Business Services
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PARTIAL BUY
Application/acceleration so used in remote areas for communication. Doing extremely well. Beat the most recent quarter by 10%. Growth rate and revenues have been accelerating very nicely. Seasonally first couple of weeks of January can be problematic for technology companies so buy only a little and add later next year.
PAST TOP PICK
(Top Pick Aug 4/10, Up 59.16%) Dominate player. Application delivery controllers.
COMMENT
Leading through late 2010 and very beginning of 2011, networking stocks were on fire. To a lot of peoples surprise several came out saying there was an inventory backup in the channels and as a result, quarters were coming in lower than expected. This was probably the 1st one that started getting impacted. He was stopped out in January.
PAST TOP PICK
(A Top Pick Aug 4/10. Down 3.07%.)
PAST TOP PICK
FFIV-Q (A Top Pick Dec 1/12. Down 24.9%.) Stopped out. Would be a Buy now.
TOP PICK
Probably has 60%-70% of the market for delivering applications and content over the Internet. With the world moving towards cloud-based delivery of content and applications, this company is well-positioned.
PAST TOP PICK

(A Top Pick Feb 1/12. Down 13.71%.) Basically, it helps to accelerate applications so that when you call up a web page, it is there quicker. Have 60% of the marketplace. They are coming back now and he is comfortable with the stock.

BUY

Interesting company. Basically they monitor Internet to servers. Came out in March with some really disastrous earnings, but since then have come out with 2 really good quarters. Business has really picked up for them. Customers have come back. Have some new products out there. Really good cash flow going now.

WEAK BUY
The 5th-best performer on the S&P in January

Up 18.2% last month. They reported an excellent quarter, beating top and bottom and raised their full-year forecast, though the quarterly forecast was lighter.