IBD'S group ranking has sunk to 85 from 3 or 4 two months ago, among 197 groups. Not surprising, really, for several reasons. First, IMO, is that anything having to do with software or computers has taken a real beating, probably due to the concerns about the slow-downs being forecast and to some extent experienced in hardware. Then, secondly, IMO,these stocks had risen considerably and were therefore very open to profit-taking.
The way I see it, computer security software will continue to grow at the 30 to 50% sales level for still many years. And Secure is doing a beautiful turn-around, with Street expectations of $.31 this year, and $.62 next. I now find its value, and those of CYBG, CHKPF, CYLK, NETA,and possibly VRSN and even AXNT , are compelling values. This week, I intend to start additional buying among some of them. |
