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Brocade Communications Systems, Inc. Message Board

cash_is_king_now 10 posts  |  Last Activity: Apr 18, 2016 7:04 PM Member since: Mar 9, 2003
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  • With RKUS acquisition, he may be planning for a different price.

    Sentiment: Buy

  • cash_is_king_now cash_is_king_now Apr 18, 2016 6:50 PM Flag

    Those estimates are a little bit high but still not bad for a company is growing at a good rate.

    Sentiment: Buy

  • Acquisition by BRCD was a good move because they are getting a company that have been growing and increasing revenue in past 5 years.
    In regard the purchase, total RKUS diluted shares stands at 96m shares (87m basic).
    BRCD pays $6.45 per share of cash or $619m and also pays .75 share for each RKUS share which will be 72m shares. The numbers are based on current info in the 10k.
    Yahoo is showing that RKUS has $230m cash and almost zero debt.
    So, the total cost will be around $400m cash and 72m shares. With 1.4B cash on hand and making over $400m in a year, BRCD will be in a good position since it can buyback its shares under $10 very aggressively while growing its business with current purchase.

    Sentiment: Buy

  • cash_is_king_now by cash_is_king_now Apr 18, 2016 3:50 PM Flag

    Ned Davis Research Group upgrades BROCADE COMMUNICATIONS SYSTEMS INC from NEUTRAL to BUY.
    BY Investars Analyst Actions - private
    — 9:04 AM ET 04/18/2016
    On April 18, 2016 Ned Davis Research Group upgraded BROCADE COMMUNICATIONS SYSTEMS INC ( BRCD ) from NEUTRAL to BUY.

    Sentiment: Buy

  • Reply to

    BRCD is a bargain at current prices

    by cash_is_king_now Apr 17, 2016 8:07 PM
    cash_is_king_now cash_is_king_now Apr 18, 2016 2:32 PM Flag

    Don't be so sure for what you are wishing for.
    The deal is a good one and opens a lot opportunity for BRCD .
    BRCD pays about $700m cash and about 75m shares.
    It gains RKUS cash position which is about $300m. So, BRCD pays only $400m cash.
    Currently, BRCD has $1.4 B cash and $800m debt. Provided that BRCD adds $100m cash every quarter, by the time the deal is done, BRCD ends up with $1.2B cash and the same debt, 75m more shares and access to RKUS revenue and income. RKUS has excellent wireless technology and this is the area that will get a lot of growth.
    In summery, BRCD owns RKUS, increase its revenue by about $450m to $500m per year and increase its income by about $60m but most importantly, growth potential and cost saving.
    A year after purchase, most of the shares paid for RKUS will be purchased back and BRCD cash position will be higher than current one while revenue and income will be much higher.
    Eventually, BRCD will be acquired and the purchase price will be around $20 per share.

    Sentiment: Buy

  • cash_is_king_now by cash_is_king_now Apr 17, 2016 8:07 PM Flag

    cash positive and PE under 10, this stock should not drop below $10.

  • Reply to

    $93 million for the CEO last year?

    by phil_inarizona Mar 16, 2016 11:05 PM
    cash_is_king_now cash_is_king_now Mar 17, 2016 2:20 AM Flag

    That will ruin the net income. Did the company make that much money as net GAAP income in 2015? The numbers provided by HZNP are all NON-GAAP.

  • cash_is_king_now by cash_is_king_now Feb 23, 2016 12:19 PM Flag

    HZNP tried 50 DMA around $19 in two different days but it could not break the resistance.
    The first time, it dropped to mid BB around $17.50 and rebounded. This is the second time that is heading for mid BB around $17.40. If it breaks mid BB then it will head down to Low BB in mid $15. If it rebounds from mid BB then it will try 50 DMA again.

  • cash_is_king_now by cash_is_king_now Feb 8, 2016 12:42 PM Flag

    Bollinger Bands has started to diverge and since they are trending down then the stock may break down to another lower level.
    Mid BB is trending down and it may settle around $17.
    Lower BB is trending down sharply to $15 and $14 areas.
    HZNP is about to break its support around $16. Next support levels are around $15 and then $14.
    It is possible that $14 may hold strongly.

  • cash_is_king_now by cash_is_king_now Feb 5, 2016 1:13 PM Flag

    Unfortunately, HZNP technical is weak.
    Upper BB crossed 50 DMA which makes 50 DMA a strong resistant in future.
    BB is converging and if the market continues its negative trend then the stock may drop to mid $16. If Mid $16 does not hold then $14 is possible.
    Mid BB is siting at $17.96 and it is acting as a resistance but it is trending down which limits the upside.
    HZNP needs volume and volume created when prices attract investors. I am thinking about a sharp drop which will continue with high volume but follows with a good rebound to get out of this mode. DEPO did it a few weeks ago and HZNP may repeat DEPO scenario.

BRCD
8.18-0.33(-3.88%)1:42 PMEDT