Sometimes it seems that analysts are very, very good at predicting the past. As far as Legato goes, it seems like nothing fundamental has changed in the last 6 months other than the bad morale caused by this accounting mess among employees and customers.
Therefore, moving forward the news may be mostly good with lots of exciting technical announcements and hip hype. It wouldn't shock me if the next 6 months was to eventually include a re-play of the irrational exuberance of 6 months ago. It certainly wouldn't be the first time the stock was flushed down the toilet and then came back shortly thereafter to explode across the ceiling.
With regard to fundamentals, it seems like some people find it problematic that the company is lagging Veritas with respect to revenue (but not income, since so far Veritas appears to be as much a non-profit as the average dot com). However, considering how stratified the backup market is by platform, etc., an overall revenue lead does not necessarily mean a majority in all niche markets, & therefore Legato may still have a impressive market positions in many important sectors. Therefore, the horse race is probably not over yet.
On the downside, if the stock slides much more, it will be an even more appealing acquisition target, and it seems that whenever it is even rumored that there is a suitor the stock gets a bump. |
