This will be a very interesting call. FFIV said government was solid. That should show up in RVBD's numbers, too. The US is stronger than emerging and the focus of RVBD's market. Plus, Kennelly has to be very positive. He has to defend their decision why 19 is lowball offer by outlining and focusing on their strengths and Opnet's integration and ability to raise revenue and margins. This HAS to be and will be a very positive call. The market dumps 300 today and this doesn't budge. The market wants to own this going into the weekend and earnings. I don't think that Elliot will raise it's bid. It does not want to be an owner, just stir up the kettle. Since another buyer has not appeared to emerge, this has to rise on its own merits. JNPR, FFIV were up today and CSCO has been strong showing interest in the sector. This goes higher. Thoughts anyone? GLTAL
They have diversified the business and beat Q4 and raised Q1 guidance. The absorption of Opnet is complete and the payoff is beginning. They need some consistent earnings showing growth to get back Wall Street confidence. Elliot set the floor at 19 and cant easily unwind. The stock is probably fully valued at this point but continued success will yield stock price increases. Looking forward Q1 has historically been weak but they have already raised guidance. Now they need to execute. The US government has a budget now so Q3 will be decent. Q4 is always good. So they should have at least a year of good earnings to come. Capital spending seems to be increasing for IT equipment. Buy and hold and this will be in high twenties this time 2015 or maybe sooner because of a buyout.