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Technology Stocks : F5 Networks, Inc. (FFIV) -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (838)	4/27/2000 1:48:00 PM
From: drsvelte	Respond to of 1801

from briefing.com... "F5 Networks (FFIV) 44 3/4 +5/8: A few days ago Briefing.com issued a bullish report on F5... In that report, we noted that the stock was likely to deliver better than expected results of $0.18... It did not... The company merely met street expectations in posting a gain of $0.18 v. a year-ago loss of $0.45... As most of you are aware the stock was severly punished, falling nearly 28% on a surge in volume... While we were very disappointed in the stock's reaction to its report, we weren't all that surprised... Given the fragile nature of the market these days, any disappointment - no matter how slight - can cause a stock to get creamed... We saw it with Exodus (EXDS), Research in Motion (RIMM) and Motorola (MOT), and, yesterday, we saw it with F5... Fortunately, FFIV's decline was more a function of its relatively small float than an indictment on its underlying business... When the momentum players didn't get the positive earnings surprise they expected they dumped the stock... It didn't matter that the company grew revenues by 527% year/year, or that it generated positive cash of $2.8 mln, all that mattered to these short-term investors is that the company didn't beat the street... On the plus side, the short-term money is washed out - leaving more grounded investors... Secondly, the company continues to do an excellent job of executing its business as evidenced by the strong top- and bottom-line growth and relatively high margins... Management went on to note that it sees sequential revenue growth in the low- to mid-teens for the remainder of the year... This is down from the 23% sequential growth posted in Q2, but still very strong relative to its peers and the market... At today's price, the stock trades at 60x estimated FY00 earnings and 38x projected FY01 results... Not bad when you consider that the street projects growth of 50% over the next five years... Resulting PEGs of 1.20 and 0.76 look more like what you'ld expect from a mature, rather than, an emerging growth company... While it may take time for the stock to right itself after yesterday's beating, Briefing.com maintains that F5's underlying business/fundamentals are strong and that the stock will outperform over the intermediate- to long-term... Pivotal support is at 30, while resistances are at 60 (congestion) and 80 (fib. retracement)"--- Bob Walberg, Briefing.com