Opinions
Bruce Murray
Symantec Corp
SYMC-Q
COMMENT
Jul 24, 2018
Stock price when the opinion was issued
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A nice little trend. A base that it over came. The pitch was a little steep and so you usually correct somehow. It is going to want to come down to the $23 level before going back. He doesn’t know if the play is done. If it breaks above $25 then you might want to get back in and put your stop loss a dollar lower.
This is in cyber security, a sector that has been very tricky for investors. An example is FireEye (FEYE-Q) which has continued to trade down. However, Symantec makes a lot of sense. It is an excellent company and its stock price is telling us that. It has traded between $16 and $25 in the last 52 weeks, and is currently knocking up against the 52 week high. This is an area you want to be in, but keep in mind that there is a lot of competition in cyber security. If you made some money, take some off the table.
This is a company that they own a great deal of and like very much. Their legacy business is Norton Antivirus. They are transforming the business into more business to business application for commercial cyber security. Thinks the new CEO is well positioned to do the transition. It has lagged this year and this is one reason they like it. Very favorable into 2018 and beyond.
This is a turnaround story. The company gained a new CEO (Greg Clark) 18 months ago with its acquisition of Blue Coat. He did a great job of turning around that business. Symantec has a strong legacy business that generates cash flow. Clark will help use that cash flow well in the future, probably with more M&A activity (Analysts’ price target is 29.42$)
A great company. Anti-virus software companies are moving to software as a service model, and this business is getting more competitive. But he doesn't know Symantec's funamentals, though he likes their business model. He would dig further and if it looks positive, then buy it.