RSAS - Risky or Smart at these levels. You decide!
Just out - 12:17 ET House approves $880 mln over 5 yrs for computer security -- Reuters
Like I said earlier, you would think this would help beaten down RSAS and SYMC and others, but let's summarize some other recent developments:
Recently RSAS was at $18+ per share and they have since dropped 50% on a SEC investigation. Serious, right, but let's explore further. I think it is an overreaction. Here's why, but you decide.
The investigation is NON-material to earnings and involves a relatively minor violation, IMHO. It is always serious to have an SEC investigation, but there are degrees of seriousness. From a recent news release -
``The investigation will not require any change to RSA Security's financial statements,'' the company said in the second of two statements released on Friday.
``The SEC has not concluded that there has been any wrongdoing, and we don't believe that there has been any,'' Art Coviello, chief executive and president, said in the statement. ``We are cooperating fully with the SEC on this matter.''
That said, I can't blame anyone if they want to avoid any stock with a hint of a problem. But you got to admit, buying TYC at $22-$25 the last couple days wasn't such a bad thing.
Also, RSAS guided this year to earnings of 25 to 33 cents vs. consensus of .27 eps
Also insider buying is strong:
biz.yahoo.com |
