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Here is an excellent post I located on the Raging Bull Board that may clear up any confusion between how RDWR's earnings play a role in JCDA.
ragingbull.com
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Does RDWR affect JCDA?
In post #2319 on this board I posted the link to RDWR's Q3 Results. Regardless of what we think of their results, the stock is down from 80 to the mid 60s in after-hours trading.
There has been a lot of discussion about the relationship (if any) between RDWR and JCDA on this board. I agree with those who have pointed out that they are in ENTIRELY different sectors with different competitors and different customers, etc. etc. The fundamentals of their company has, in my view, very little if anything to do with the fundamentals of JCDA. (Which are quite good!)
That said, the only reason that RDWR's successes or failures could affect JCDA is through misunderstanding of the above or based purely on the fact that both are Israeli companies. Now, I tend to think that most investors would only need to take a cursory look at the web sites of these two companies to see that they are up to totally different things. Even if they won't read a prospectus, you'd think people would go look at the pretty graphics on these sites and realize they have nothing to do with each other. Also, it's obvious that the success or failure of one isolated company in a country doesn't necessarily affect the success or failure of another company in that country.
But with the case of Israeli companies, we're up against a huge lack of information. So many people are just utterly unaware of these companies. It's this fact that makes me think that news about RDWR could actually HELP JCDA, and further that it could help JCDA regardless of whether the news is good or bad!
With apologies to those currently losing profits in RDWR, the fact that their stock is swinging so drastically is good for us, in that it is likely to generate a news story, which raises awareness of Israeli companies generally. If any of these uninformed people happen upon JCDA because they heard a story about RDWR, I'd think that they would at least check out JCDA before buying. If they do that, I think they'll discover what we all have: that this company has incredible prospects and should continue it's upward march!
Now maybe that's peppered with a little bit of wishful thinking, but I think that if you want to help JCDA, the right thing to do is to inform people of the facts. We're lucky enough to have found a company that can comfortably rest upon the facts about it, and doesn't need to succeed based on some cloudy resemblance to some other company. I'd tell people these truths: 1) RDWR and JCDA are totally different. 2) If you look at the facts about JCDA, you're going to recognize the amazing investment opportunity it presents. |
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