Tag Archives: Riverbed Technology

Is This Apple Stock Position Still Worth Holding?

By Tim Beyers, The Motley Fool

Filed under:

Each week, I endeavor to report the results of the Big Idea Portfolio, a collection of five tech stocks that I believe will crush the market over a three-year period. I’ve done it before; my last tussle with Mr. Market ended with me beating the index’s average return by 13.35%.

Real money was on the line then as it is now, which means any one of the five stocks you see below could cause me a lot of public embarrassment. Apple has caused the most trouble over the past several months. Count this week’s 3.5 percentage-point drop as the latest dip.

Apple’s stock price has fallen more than 33% over the past 12 months and is down 20% year to date, despite an 8% rise in the S&P 500. Holding in hopes of seeing CEO Tim Cook and his team make good on long-promised innovations in delivering televised entertainment has cost me dearly.

Bullish investors will nevertheless tell you that Apple stock looks like a bargain at current prices. They’re right. Google and Microsoft both trade at a noticeable premium to Apple when you factor in liquid assets:

AAPL Price to Earnings Less Cash TTM data by YCharts.

Selling now would amount to declaring that the Mac maker is incapable of generating even 10% annual earnings growth for the foreseeable future. Analysts are modeling for 18.9% annual gains over the next five years, according to Yahoo! Finance.

A decade of investing has taught me that winning is less a matter of wits and more a matter of willpower. Apple is testing my will to hold, so I shall.

What’s the Big Idea this week?
Elsewhere, Google and Riverbed Technology barely budged as my other two tech holdings plunged, costing me another 420 basis points in my three-year battle with Mr. Market. Among the indexes, only the Dow reported a marginal 0.19% gain.

This time, the Russell 2000 led the laggards with a 2.72% decline, followed by the Nasdaq’s 1.30% drop, and the S&P 500’s 0.59% dip, according to data supplied by The Wall Street Journal. Here’s a closer look at where I stood through Thursday’s close:

Company

Starting Price*

Recent Price

Total Return

Apple

$416.26**

$427.72

2.8%

Google

$650.09

$795.07

22.3%

Rackspace Hosting

$41.65

$46.86

12.5%

Riverbed Technology

$25.95

$14.96

(42.4%)

Salesforce.com

$100.93

$166.41

64.9%

AVERAGE RETURN

12.02%

S&P 500 SPDR

$124.39**

$155.86

25.29%

DIFFERENCE

(13.27%)

Source: Yahoo! Finance.
*Tracking began at market close on Jan. 6, 2012.
**Adjusted for dividends and other returns of capital.

Notable newsmakers
Among the other tech stocks making news last week:

  • Facebook took its fight with Google to next level by introducing “Home,” an overlay for Android phones that assumes control of a handset’s home and lock screen. An accompanying “cover feed” reveals what friends are up to while making chat accessible from any app or screen.

  • Tesla Motors soared this week after the company said Model S sales came in at 4,750, above the 4,500 projected earlier. The company also forecast a surprise first-quarter profit. Tesla next reports earnings on May 6.

  • Finally, in yet another …read more

    Source: FULL ARTICLE at DailyFinance

Can New Leadership Unlock Riverbed's Value?

By Richard Saintvilus, The Motley Fool

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Shares of Riverbed Technology are down 31% so far this year. Not only did disappointing fourth-quarter results immediately send the stock plummeting 22%, investors have now grown concerned about the company’s management — specifically, its ability to effectively synergize the company’s $1 billion deal of OPNET.

While Riverbed has done a decent job making the best out of a tough fiscal environment, the company has not been able to reverse the slowing growth in its wide area network — or WAN — optimization business. However, despite the recent slowdown, the company still boasts a solid 52% market share, surpassing rivals like Cisco . Nevertheless, investors wanted signs that the company was committed to growth, and last week they got it. But will it matter?

Good addition, but in the wrong area
Last Wednesday, the company announced that Robert Whiteley was joining Riverbed as vice president of product solutions marketing. Whiteley arrives after having spent 10 years at Forrester Research as an industry analyst. Riverbed wants to utilize Whiteley’s industry experience since he’s been involved in so many customer meetings.

As I’ve said recently, Riverbed has done a decent job meeting the needs of its customers. Plus, the company has not been doing poorly in terms of overall growth. The problem, however, has been with execution and internal operations. And regardless of what the share price may reflect, Riverbed still posted revenue growth of 17%  year over year and 9% sequentially.

Likewise, product revenue was solid, up 12% year over year, while advancing 9% from Q3. So, this tells me that management is already delivering well to the customer. However, profitability is the problem. All of that growth has not materially impacted the bottom line. Profits tumbled close to 80%. I understand that the deal for OPNET had a lot to do with this. However, there continue to be operational issues that Whiteley will not be able to address.

For instance, operating margin arrived 2% lower at 27% — missing Street estimates. Plus the company only posted 8% growth in operating income. This is despite advancing gross margin by almost 1% year over year. These (among others) are the reasons why the stock is getting hammered. The company has also posted declining EPS while also hemorrhaging cash flow, which recently dropped 12.44%. So while Riverbed deserves credit for identifying an industry talent like Whiteley, the company has failed to addressed the proper areas of its operation.

Last shot at growth?
If you’re still holding shares of Riverbed, you’re still betting that the management can put this company back on track. You’re also wagering that the company will synergize OPNET to the extent that Riverbed can start posting market-beating performances. While it’s certainly impressive that OPNET‘s application management business is growing at a rate of 30%, I just don’t believe that Cisco and F5 Networks are going to make it easy.

F5 has been making moves of its own to solidify its market position by picking off LineRate Systems, …read more
Source: FULL ARTICLE at DailyFinance

Can Juniper Ever Prove the Doubters Wrong?

By Richard Saintvilus, The Motley Fool

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If it’s not one thing with Juniper , it’s another. It seems no matter how much I’ve wanted to like this company, there’s always something standing in the way. While Juniper always has an interesting portfolio of products that suggests strong growth should be expected, the company hasn’t been able to penetrate the enterprise and seek new end markets in the manner of Cisco .

What’s more, soft carrier spending has kept the stock in a holding pattern for almost a year. Plus, there are now questions about the company’s commitment to its business since it was revealed that management unsuccessfully tried to sell off assets to some of its rivals. Making matters worse, the stock is not cheap — trading at a P/E of 55 compared with Cisco’s P/E of 12. And for Juniper to overcome doubt, the company has to do better than just 2% revenue growth posted in the recent quarter.

When it rains, it floods
The bad news continued on Tuesday, as the stock took another beating, losing more than 5% after Goldman Sachs downgraded the company to “sell,” while citing competitive and disruptive pressures. In her research note, analyst Simona Jankowski stated, “We have greater concerns about Juniper’s ability to execute in an environment marked by more rapid disruptive change and heightened competition.”

She’s absolutely correct in her view — albeit, a little late. In fact, this has been the ongoing concern about Juniper, which we recently discussed. Juniper is now in a competitive disadvantage not only against F5 Networks , but also new entrants such as Palo Alto Networks and other rivals gunning for leadership in software-defined-networking, or SDN, platforms. Jankowski also cited Juniper’s instability within leadership. She suggested that the higher-than-average senior management turnover over the past three years will affect “the balance sheet from the accelerated pace of recent acquisitions.” She’s right again, as this level of turnover brittles the company’s structure.

It’s the carriers, stupid!
Juniper investors often cite the rebound in carrier spending as the next catalyst, while suggesting that it’s the carriers’ fault that the company has been such a disappointment. I think that’s a pretty big stretch. While networking/security sector often trades in tandem, we can see that Cisco hasn’t experienced similar struggles.

Besides, let’s assume that were the case. It would imply that Juniper has an overreliance on an industry it can’t control. For that matter, management has failed to properly diversify the company. What’s more, that two-thirds of Juniper’s revenue comes from carriers is a major concern. Conversely, that’s not the same scenario for Cisco, which has much stronger exposure in the enterprise and thus is able to offset any weakness.

That’s not to say, however, that Cisco won’t rejoice when Verizon and AT&T open their wallets. A rebound will certainly help Juniper, and industry experts believe that it will happen. But getting the timing right has been difficult. But Juniper still has to answer for the competition. And specifically, F5 and Riverbed Technology, which are also waiting and salivating for …read more
Source: FULL ARTICLE at DailyFinance

2 Unstoppable Trends Worth Betting On

By Tim Beyers and Alison Southwick, The Motley Fool

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New data shows that there are more than a half billion smart devices in use  in U.S. households today. Tim Beyers, of Motley Fool Rule Breakers and Motley Fool Supernova, says there’s a good reason for this: The infrastructure to support smartphones and tablets is geometrically better today than it was even two to three years ago.

In the video below, Tim talks with the Fool’s Alison Southwick about the changes, and how they helped make the annual South By Southwest interactive conference a truly connected affair despite tens of thousands of attendees crowding both the networks and streets of Austin, TX.

He also shares three stock ideas based on his experience, so be sure to watch, and please leave a comment to let us know what you think.

The mobile revolution is still in its infancy, but with so many different companies, it can be daunting to know how to profit in the space. Fortunately, The Motley Fool has released a free report on mobile named “The Next Trillion-Dollar Revolution” that tells you how. The report describes why this seismic shift will dwarf any other technology revolution seen before it, and also names the company at the forefront of the trend. You can access this report today by clicking here — it’s free.

The article 2 Unstoppable Trends Worth Betting On originally appeared on Fool.com.

Fool contributor Tim Beyers is a member of the 
Motley Fool Rule Breakers
stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple, Google, Rackspace Hosting, Riverbed Technology, and Salesforce.com at the time of publication. Check out Tim’s web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Here's What This 220% Gainer Has Been Buying and Selling

By Selena Maranjian, The Motley Fool

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Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today, let’s look at Passport Capital, which was founded by John Burbank in 2000 and known for combining macroeconomic analysis and fundamental research. Burbank himself is famous for having called the subprime mortgage crisis and reportedly earned a 220% return on it in 2007, though he lost 50% the following year.

The company’s reportable stock portfolio totaled $2.6 billion in value as of Dec. 31, 2012.

Interesting developments
So what does Passport Capital‘s latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are Williams and calls on Schlumberger. Other new holdings of interest include Amarin and Exelixis . Amarin is a late-stage cardiovascular-focused biotech company with a promising (and FDA-approved) drug to lower triglycerides, Vascepa. It also has strong support on Wall Street, despite a significant number of shares sold short. My colleague Brian Orelli has wondered why bigger companies haven’t signed on as partners with Amarin. Some wonder whether the company will be acquired by a big pharmaceutical company.

Exelixis, meanwhile, has received FDA approval for its thyroid cancer drug, Cometriq, and has just launched it. That drug may also get approved to treat prostate cancer, and Exelixis is looking at treating more kinds of cancers with it, which could drive more profits. While the company’s future seems promising, its present has led theStreet to downgrade it because of “feeble” EPS growth and lackluster return on equity and operating cash flow.

Among holdings in which Passport Capital increased its stake was Cliffs Natural Resources , an iron and coal specialist that recently slashed its dividend by 76%, while announcing the issuance of 9 million new shares (6% of its current share count). Those moves might boost its long-term health, but they’re not thrilling some shareholders, who see greatly reduced income and share dilution. With its stock down roughly 60% over the past year, though, some wonder whether it’s a good buy now. Cliffs recently announced plans to idle a Quebec iron ore pellet plant, and management is bullish, expecting growth in demand from China and overall pricing improvements.

Passport Capital reduced its stake in lots of companies, including Riverbed Technology, which has been hurt by sluggish IT spending. Many have lost faith in the company, with its shares down 46% over the past year, but its disappointing fourth-quarter results weren’t that bad, with double-digit revenue growth and some strength in its recently acquired OPTNET business. The company does face serious competition, though.

Finally, Passport Capital‘s biggest closed positions included Wynn Resorts and Apple. Other closed positions of interest include Keryx Biopharmaceuticals and Vical .

Keryx investors were hit with disappointing trial results a year or so ago for the company’s experimental colorectal cancer drug perifosine. But in January they …read more
Source: FULL ARTICLE at DailyFinance

Riverbed Announces First Quarter Fiscal Year 2013 Earnings Release Date

By Business Wirevia The Motley Fool

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Riverbed Announces First Quarter Fiscal Year 2013 Earnings Release Date

SAN FRANCISCO–(BUSINESS WIRE)– Riverbed Technology (NAS: RVBD) , the application performance company, will release first quarter financial results after the close of market on Monday, April 29, 2013. A live webcast of the earnings conference call will be made available at 1:30 p.m. Pacific Time on the Riverbed® Investor Relations website at www.riverbed.com/investors. The conference call and webcast will include forward looking information. A replay of the audio webcast will be available for 12 months.


About Riverbed

Riverbed delivers application performance for the globally connected enterprise. With Riverbed, enterprises can successfully and intelligently implement strategic initiatives such as virtualization, consolidation, cloud computing, and disaster recovery without fear of compromising performance. By giving enterprises the platform they need to understand, optimize and consolidate their IT, Riverbed helps enterprises to build a fast, fluid and dynamic IT architecture that aligns with the business needs of the organization. Additional information about Riverbed (NAS: RVBD) is available at www.riverbed.com.

Riverbed and any Riverbed product or service name or logo used herein are trademarks of Riverbed Technology, Inc. All other trademarks used herein belong to their respective owners.

Riverbed Technology
Renee Lyall, 415-247-6353 (Investor Relations)
renee.lyall@riverbed.com

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

The article Riverbed Announces First Quarter Fiscal Year 2013 Earnings Release Date originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

This Apple Sell-Off Is Getting Out of Hand

By Tim Beyers, The Motley Fool

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Each week, I report the results of the Big Idea Portfolio, a collection of five tech stocks that I believe will crush the market over a three-year period. I’ve done it before; my last tussle with Mr. Market ended with me beating the index’s average return by 13.35%.

Real money was on the line then as it is now, which means any one of the five stocks you see below could cause me a lot of public embarrassment. This time, Apple slumped as salesforce.com soared.

Let’s address Salesforce first. Shares zoomed more than 7% to a new all-time high after the company reported better-than-expected fourth-quarter results. Revenue came in nearly $4 million ahead of estimates while per-share earnings beat the consensus by more than $0.11.

Salesforce also reported a 59% year-over-year increase in contracted work in the pipeline — now $3.5 billion, up from $2.2 billion at this time last year. Current deferred revenue (i.e., work billed but not yet recognized on the income statement) rose 39% as a growing number of large companies deploy software in the cloud.

And yet Apple remains the bigger story. The stock touched a 52-week low Friday only to see even lower prices in Monday trading. Skeptics have taken to the markets to proclaim the end of Apple’s dominance of the smartphone and tablet markets. Others simply disapprove of CEO Tim Cook’s tightfistedness when it comes to the Mac maker’s growing cash pile.

I’ve no complaints. In fact, I’ve been thinking of adding to my Apple stake for a while. If I’ve yet to pull the trigger it’s because there are so many interesting opportunities right now. And yet I can’t help wondering if I’m missing out: at just 8.4 times next year’s average earnings estimate, today’s buyers may be getting the earnings potential of Apple’s “Next Big Thing” — whether it’s  a TV, a watch, or a cheap iPhone — for free.

What’s the Big Idea this week?
Fortunately, Salesforce’s surge more than compensated for Apple’s apathy last week. My five tech stocks cut Mr. Market’s lead by 118 basis points from the week prior. Not bad for these turbulent times.

Indexes mostly improved. All but the small-cap Russell 2000 moved higher, led by the Dow Jones Industrial Average and its 0.64% gain. The Nasdaq and S&P 500 eked out gains of 0.25% and 0.17%, respectively, as the Russell fell 0.16%, according to data supplied by The Wall Street Journal. Here’s a closer look at where I stood through Friday’s close:

Company

Starting Price*

Recent Price

Total Return

Apple

$416.26

$430.47

3.4%

Google

$650.09

$806.19

24%

Rackspace Hosting

$41.65

$56.11

34.7%

Riverbed Technology

$25.95

$15.15

(41.6%)

Salesforce

$100.93

$182.00

80.3%

AVERAGE RETURN

20.16%

S&P 500 SPDR

$124.94**

$152.11

21.75%

DIFFERENCE

(1.59)%

Source: Yahoo! Finance. *Tracking began at market close on Jan. 6, 2012. **Adjusted for dividends and other returns of capital.

Notable newsmakers
Among the other tech stocks making news last week: