well, to be clear, based on the last earnings report and drop in profits, the tock went from the high 7's to touch the 5 dollar range (5.89 closing low). it has since steadily been coming back to the current price of 7.2. perhaps if they actually meet the profit targets, they probably will get back to the high 7's and possibly trade in the 8's for a while. i'd say that based on the past, they may drop off after earnings so, interesting trade but probably not an "investment" yet.
few things going on -
1) stock repurchase could help with their earnings. 2) Non-GAAP operating margins are expected to be 8% or better, although i think on a GAAP basis, they are not expected to be above 8%. 3) they announced last quarter that the 2007 full year year revenue estimate is $525MM. yahoo is reporting that the average estimate is $527MM - so, while 2MM is a small amount, it would mean close to 2 pennies a share difference in earnings.
when i read the fool article, doesn't sound like a resounding pounding on the table for buying. sounded to me more like - hey, consider this stock rather than totally ignoring it. i think it also pointed to risky choice.