Fasciocco: Blue Coat (BCSI)
"My pick for 2010 is Blue Coat Systems (NASDAQ: BCSI), which provides web security," says Leo Fasciocco, a technician who picks "breakouts" for The Ticker Tape Digest.
"Blue Coat, based in Sunnyvale, Ca., provides software and services for networking, with annual sales of $444 million.
"Its products enable its end user customers to secure their Internet gateways and remote computer systems by providing protection from malicious code, or malware and objectionable content.
""The company is benefiting from an expansion of its products. In 2008, BCSI acquired Packeteer, a provider of WAN traffic prioritization technologies. It most recently came out with an expansion of its Webpulse cloud service for Arabic web content.
"Looking out to fiscal 2011 ending in April, the Street projects a 44% jump in net to $1.30 cents a share from the 90 cents anticipated for fiscal 2010.
"The stock has been trending higher the past few months recovering from the bear market. The long-term chart for BCSI shows the stock with a cyclical tendency. It is now in the up trend part of its cycle. We see that as favorable for bulls at this time with the stock now trending higher.
"In our view, BCSI is an outstanding stock poised to breakout. It is holding in its base and poised to show massive earnings gains.
"Overall, we consider the stock an excellent intermediate-term play because of its strong profit outlookWe are targeting BCSI for a move to 36 after a breakout. A protective stop can be placed near 24 after a breakout."
Comments
Leave a Reply