Eric,
FFIV
09-Mar-00 13:06 ET ******
F5 Networks (FFIV) 104 5/8 +5 5/8: Back in late January, Briefing.com issued a bullish Trader's Edge Stock Brief on FFIV... Since that time this leading player in the fast growing Internet traffic and content management (ITM) arena has underperformed the market... In fact, even with today's gain the stock is down 20% from the date of our Brief... While we have been disappointed in the stock's behavior, the company's underlying fundamentals remain very strong...
Over the past three quarters, company has posted year/year sales growth of 611%, 621% and 591%... FFIV has also had no trouble beating the consensus estimates, doing so by 80%, 257% and 41%...
Unlike many of today's high-flyers in the tech and biotech industries, FFIV is profitable...
Current estimates have company earning $0.77 in FY00 and $1.16 in FY01... Sixty days ago, the street expected earnings of $0.53 and $0.91... Given company's history of outperformance, Briefing.com contends that current estimates are still to conservative... As FFIV continues to deliver on the promise of strong growth, look for earnings estimates to be revised higher once again...
Another factor which could work in the stock's favor is the lack of coverage... At present estimates drawn from only 5 analysts... Considering FFIV's successes, we expect more coverage in the quarters to come, and most of it will be favorable...
Technically, recent correction hasn't done any serious damage either... Convergence of moving averages combined with recent break back above 50-day moving average suggest stock poised for renewed gains... Our initial upside target re
source www.briefing.com
Lutz |
