If you sell your shares for a tax loss, you can't buy back in quick enough to take advantage of what I think will be a solid bounce. Now that we have breached $18, I expect bargain hunting, analyst upgrades, and the buyback to push this considerably higher. If this dips much below $18 again, I will continue to add more shares.
Its amazing how quickly we dropped and the way back is very hard indeed...
Maybe the end of the year and tax loss is not helping either...
This share buy back is basic corporate treasury and corporate finance 101 ... If this share buy back had been announced when the stock had been gaining traction in the low 20's we would be in the mid 20's now.
All that has happened here is that management has allowed the stock to establish a lower trading range. We can't cheer management when they announce a buy back to distract us from their bungling of Ahmed's departure. We need a real plan to grow EPS. What cost reduction initiatives are out there? What inventory controls and supply chain controls are being put in place? A buy back is just a start.
And just getting us back to where we were 2 weeks ago is a joke. The overall markets are at or nearing decade long highs and we keep trending lower. Fix this ASAP. Demand more from the Xie's!!!
I disagree, they will be much more aggressive and will take advantage of the lower prices.
It will help them to increase per share earnings.
The $900M is sitting in the bank and yielding less than 1% per year...
Great move. This is the announcement. It will take some time likely to have the buyback program going in full steam. Probably about $0.75 million per trading day once it starts.
There is some small 5-10% to be had getting in before the buyback runs. This is another reason why some funds may get in by the end of the year.
Here we go! Look for end of the year bargain hunting to push this puppy much higher. I don't know what the short float is, and I pretty much don't care, but this buyback announcement seems to be stimulating buying big time.
I called it a couple of weeks back. With all the cash the company is sitting on, buying back its shares at a 15% discount is the best investment they can make. It also helps earnings by reducing the share float. The company obviously knows the full details of why the CFO left, so buying back at this time confirms to me that there is no other bad news to come. IMHO.
Very wise of management. Clearly an effort to restore investor confidence in the company.
And for those who very crying CEO leaving CEO leaving... enjoy the holiday season!!
The knock on this stock has always been the lack of management focus on operational issues, not the products. This is one of those all too common situations where a company manages to grow in spite of itself. The existing management is great for the technology, R&D and understanding of the competitive issues. But the existing management is horrendous at the operations, the supply chain, the predicting and forecasting of sales and revenue.
Until the operational side of FTNT is fixed I can't see this stock overcoming its discount. Under Ken G and Ahmed R this was getting fixed. Now, to quote Yogi Berra, "it's deja vu all over again".
I expect more upgrades will be coming as analysts make their picks for 2014. FTNT seems like a no brainer as the stock is selling at a 15% discount after announcing good earnings. When you throw in the fact that they are on the cutting edge of the security market at a time when security breaches are becoming quite common, you have a double reason to jump on board. IMHO.
Fortinet has $900M in cash.... The SA article took their numbers from Yahoo instead of directly from company financials.
He is the reason the Ignore button was invented. He just wants cheaper shares... or I guess his boss does. He's just an errand boy.
Remember that Fortinet does not need to be bought out. They have annual revenues of $600 million, a cash position of $500+ million, great continuing cash flow from operations and EPS in 2013 near 50 cents/share. They are also in the sweet spot that is growing and companies are spending more on the world over.
A buyout near $30/share is a good deal in the long run for companies like EMC, Cisco, Juniper or IBM.
lol.......no way the company sells for $25-29. It will be in 30's at a minimum. In UTM....they are #1....BEST OF BREED. For a large multinational....this is worth a large premium. barney
CEO is one of the co-founder and certainly not leaving. Clearly shows how desperate you are and stuck with a short at yearly lows. Take your loss and move on. This is one is not for shorties like you.