I do not own this stock and I am not planning buying this soon,just want to share some research data. OK some number first. EPS Growth Rate: 24% (10 years) Cash Growth Rate: 16% (5 years) Equity Growth Rate: 31% (10 years) Sales Growth Rate: 60% (10 years) ROIC: 11% (5 years) : 11.6% Yes this will easily pass the Rule #1 criteria. Next the Estimated EPS growth rate is 22.9%, Future PE 45(estimated) , get a sticker price $80. Today’s trading price is $ 21. Short term may still see off but long term this could be abargain. Check following competitors, CTXS | JNPR | CSCO | RVBD | RDWR | FDRY | SYMC | INAP |
None of them have more than 50% margin of safety. 1000 employee makes it has room to grow. Weak dollar and strong internal brand may help their revenuegrowth for 2008. Recession will a worry – CSCO already issued a warning thatthe banks are ordering less expense network equipment. |