Brocade Communications Systems,Inc. (Nasdaq-BRCD) Message Board

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Technology Stocks : Brocade Communications Systems,Inc. (Nasdaq-BRCD)

BRCD 12.73

0.0%

Nov 20 4:00 PM EST

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To: SouthFloridaGuy who wrote (802)	3/9/2001 8:40:57 PM
From: Jack Hartmann	Read Replies (1) of 1583

This baby goes to sub-$10 this year. Hmmmm. Worst case is $5 which is the approximate 2 year low price 3 splits adjusted. Since we had the Nasdaq hit a two year low today, anything is possible in the world of investing. I'll be betting against that though. BRCD is cash flow positive and has 211M cash in the bank. It can fund its own expansion without dependence on a secondary ulike many techs. If the EPS and revs remains flat for four quarters and only earns 0.48 for 2001 calendar year, the PE would be 27. That probably will be ok if the 2002 picture looks better. The market has always paid a premium for market leaders. BRCD has 61% share in its space. Also SUNW should kick some revs in the last quarter. One thing about BRCD and the sector, IT managers can postpone spending for about three quarters, but will have to spend money as storage needs arise. It is not discretionary item like Coke and Marboros. Jack

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