cookie re BRCD -
3:04pm 08/23/01 Brocade drops more than 9 percent (BRCD) By Michael Baron
Brocade Communications (BRCD) is sliding $2.63, or 9.9 percent, to $23.95, on volume of 8.66 million shares. The San Jose, Calif., maker of fibre channel switches for network storage declined comment on the movement, citing company policy. Steve Berg, an analyst with Punk, Ziegel & Co., said the move seems to be related to a spate of insider selling. "The one thing I do know for sure is that a number of form 144s were filed today for sales," he told CBS MarketWatch. "And while I understand the move in relation to that, I wouldn't read anything into it because the company tends to give out a lot of options and there is regular selling by insiders." Berg, who has a "buy" rating on the stock said Brocade remains expensive relative to its peers in the storage space but he added that this is partly because the company spends a considerable amount on research and development, in a sense sacrificing some of its near-term growth for even greater long-term potential. "This is still a great long-term idea," he said, noting that all the news about the company's latest products, including the SilkWorm 12000 switch, has been good. Brocade shares tumbled last week after the company met profit expectations for the third quarter but warned about the fourth. |
