BRCD fundamentals are strong and it is net cash positive.
Another positive point for BRCD is the fact that BRCD is growing its revenue and income in contrast to other tech stocks.
However BRCD valuation and PE are very low compare to its peers and many other tech stocks.
So, what is holding down BRCD?
One may be uncertainty regarding CEO but another one is technical issue.
BRCD is just trading around 50 DMA. However the 50 DMA is trending down and it will continue for next 2 weeks. 50 DMA will bottom around $5.60 where it will turns around and trends up and acts as a strong bottom.
When the 50 DMA is out of the way then BRCD will get a new life and it will start to outperform the market. When a new CEO is announced in next few weeks or max 3 months (it can be at any day) then BRCD may jump above previous high around $6.50.
You're a newbie to Brocade, so don't try to overanalyze the stock.
Brocade has been a serial underperformer for years, especially since the debacle of the Foundry Networks buyout. The company gets no respect from investors and, as such, it's now a "show me" stock.
Bottom line, regardless of the recent improvements in earnings and cash flow, Brocade will have to break out of the $2.0-$2.2 billion annual revenue range to attract serious buying interest. Once they produce a $600+ million quarter, the stock will move back to $7+. Until then, look for more of the same old trading range.
You still don't get it. BRCD can have all the positive earnings and revenue growth, etc., in comparison to its peers. It is going nowhere until a management change and additional product development/diversification occurs ]which separates it from any meaningful competition. The share price is going to fluctuate as it has these last 6 months with a lot of people making money including myself. Once again, the fiscal cliff crisis outcome is going to determine the fate of many investors and corporations.