I have always watched this stock but never pulled the trigger. Could not get past the valuation.
Cisco is to intenret security as VF CORP is to standard winter attire.
I just can't help thinking how/why would Cisco go out and PAY UP for sourcefire. 2.7B for a company trading at less than 1B less than 3 years ago and VF corp. or COACH even could look past this company.
I don't want a buyout nor do I think there will BE a buyout.
My point is to show that the market is clearly undervaluing business's. I don't know what Sourcefire is worth and internet security is not my forte. But clearly CISCO saw value and the market didn't.
The market is disrespecting the UGG brand and its performance for 9 years now. IT is undervaluing the growth over the next 30 months along with the enhancements to the bottom-line with UGG PURE integration.
Sourcefire has less than 250M in revenues and 5M in income. It had 200M on the books. Cisco bought it for 2.7B.
Granted, retail and technology are opposite sides of the spectrum and nothing to do with each other. But Deckers ha 5 brands under its belt, with 1 brand, UGGS, that delivers more than 1.2B in revenues, and over 100M in income, trading at just 2B.