I bought in at 10.15 on Cramer's recommendation, after I read the quotes from the meeting
and when they talked about focus being long term and not short term I decided to sell
because the only reason i originally bought in was because I was expecting a short term
move from the meeting or a buy out. I ended up selling at 10.01 and taking the loss and
moving on to try and make it up.

this is not to say you should sell or that I am correct, just saying what I did and why I
did it.
Ben

I sold this mess. Only lost 80 bucks. I'm sure others lost a lot more. Lets review
Cramer's trade picks for the week.

BRCD - Sound of baby crying
MOV - Train wreck
KMX - Train wreck
PVH - Sound of punching bag
ACN - House of pleasure
DSW - Paddles..clear!

Did I miss any? ;o)

Last edited on: 03-30-2007 02:03 pm

^

This trade is over. I listened to a recording of the analyst meeting. They raised earnings
estimates by $.02 for the 2nd half of the year. This is due to cost cutting, not an
increase in revenue or profit margins. The company picked up some debt(170M) from the
McData acquisition and that portion of the business has a lower gross profit. It's in the
40% range, where normally they're in the 50% range. DSO is improving. Excess liquidity
will be put toward their stock buyback program. They have 200M left in the program. There
could also be some pricing pressures and the possibility they will lose customers to CSCO.
I also don't feel like they have their arms around the McData acquisition yet, and may not
100% know what they're dealing with until next year.

All that said, with their earnings estimates for this year and next I think the stock is
undervalued. Do I just sell now and consider this a small loss(I got in at $9.75), or hope
for a bounce and sell then?

Opinions?

You gambled and lost.

Stks like this are just gambles on a turnaround.

Cramer. *shakes head*

Ditto that. It also triggered on the 3x2 system which picks good stocks that have sold off
3 days in a row making them likely to be a successful trade.

I bought BRCD at $9.75 yesterday ahead of the meeting. Someone called in last night during
the lightning round, but Cramer hadn't had any news on the outcome of the meeting. I
haven't seen anything yet this morning. I did some analysis yesterday and think the stock
is undervalued. There are also rumors they could get taken over by CSCO. I wouldn't sweat
this thing too much. It's been beaten down lately and there's probably not a lot of
downside. Unless of course some really bad news comes out of the results of the meeting.

Hey Ray. Go over to the "Stockpickr Lightening Round" thread, and post your question.
Cramer is supposed to answer them sometime.

Sorry, I don't know a darn thing about BRCD...

OK, I am no pro. But I wanted to buy BRCD ahead of the analyst meeting thursday. Monday
morning the thing races up. I lay low. Comes back down and I feel good about buying it at
$10.15 on wednesday. We are hurting tonight! Who has the skinny on this one.