BEA Systems (BEAS) - Undiscovered Growth Stock Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : BEA Systems (BEAS) - Undiscovered Growth Stock

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: bob zagorin	3/2/2007 1:20:02 PM
	of 2477

Dykstra: Tee Up BEA By Lenny Dykstra Special to TheStreet.com 3/2/2007 10:06 AM EST With all the volatility we have experienced the last four days, I have decided to close out the week with a stock that has found its bottom. At a recent $11.82, BEA Systems (BEAS - Cramer's Take - Stockpickr - Rating) is trading near its 52-week low. On the positive side, this company has a big buyback program in place and more than $1 billion in cash, leading some to speculate it could be a takeover target by a larger competitor. BEA remains a world leader in enterprise infrastructure software; customers use the Tuxedo, Web Logic and Aqua Logic products to reduce IT complexity, enhance existing resources, and speed the delivery of new services. However, readers need to be aware that BEA didn't release earnings results for the fourth quarter because of an ongoing stock options review. The company has said that the outcome of that review will require changing the accounting of some option grants, which will hurt its results for certain periods. BEA's software is deployed on top of an operating system and database in an enterprise server, and it serves as a platform technology for enterprise applications. BEA has expanded into product categories that take advantage of the features in the underlying application server. BEA has more than 15,000 customers, including the majority of the Fortune Global 500. This looks like an ideal setup for a buy of in-the-money calls, and we are going to buy 10 of the Sept. 10s (BUCIB) at $2.45. The risk-to-reward ratio is about as good as it gets, meaning this is definitely a lock-and-load situation.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next