Dow Jones Industrial Average 17.001.22 (UP ) Week ending 08-22-2014
Dow Jones Industrial Average 17.098.45 (UP ) Week ending 08-29-2014
Nobody likes to talk about about the Tech bubble of 2000 - 2002. March 11, 2000, NASDAQ at 5132.52 to Oct. 9 2002, NASDAQ at 1108.49. $5 Trillion dollars lost in market value. 78% of the value of the NASDAQ lost. In the middle of it all, the worst attack on American soil since Pearl Harbor with the attack of the World Trade Center at 8:46 AM on 9-11-2001. A lot of dot.com companies with no real business and a lack of cash went down. The good stocks with real businesses went down too. CISCO declined 86%. Amazon went from 107 down to 7, (then back up to 400!). If you were not diversified and all in tech, then you were crushed. Could it happen again? Sure. But am I worried right now. No. Will we forget the World Trade Center attack? Never.
F5 Networks (Symbol FFIV, $124.19) is a company that provides application delivery networking, (ADN), technology that secures and optimizes the delivery of network based applications. The issue with the above tech crash was that companies had no liquidity, no cash. F5 Networks, as of last quarter, has $611 Million dollars in cash. The security threat on our international bank systems and other vital businesses makes F5 Networks a very important company with very important products in 2014 and forward.
Here are the rest of the numbers. F5 Networks has a PEG ratio of 1.43 and a Return on Equity Ratio of 20.10%. The company does $1.7 Billion dollars in Revenue and produces quarterly free cash flow of $132.72 Million.
F5 Networks has 74.42 Million shares outstanding and has a Market cap of 9 Billion.
F5 operates at a quarterly Gross Profit Margin of 81.85%. The current Price Earnings ratio is 23.3. The 1 year EPS growth is 17.7% and the 3-5 year EPS growth has been 23.2%.
According to CBSMarketwatch website, the earnings per share for 2013 were $4.52 per share. 2014 is projecting out at $5.35 per share and for 2015 it is looking like $6.25 per share.
Stock price appreciation has been very good here. The YTD return so far for 2/3 of the year is 36.68%. The one year Total Return for the TTM , (trailing twelve months) has been 47.63% .
The 3 year Total Return is 57.76%. The company currently pays no dividend.
This market will need to consolidate gains for the last third of the year , but you will need a percentage of good quality growth tech names in your portfolio and F5 Networks should be one of them. I would just nibble here, until you get a little dip to commit more resources to FFIV. Geo-political events are also cranking up a bit here, so I would be very cautious with deployment of assets to the market for long term growth positions.
So here in the USA, we are off today for Labor Day, a holiday to celebrate working men and woman and to give them a well deserved day off.
Phillies and Braves today in major league baseball. A pitchers match-up between the Braves-Teheran and the Phillies - Cole Hamels. Great pitchers. I will be watching and cheering for the Philadelphia Phillies.
Have a great week and last third of the investing year,
Freewilly
Dow Jones Industrial Average 17.098.45 (UP ) Week ending 08-29-2014
Nobody likes to talk about about the Tech bubble of 2000 - 2002. March 11, 2000, NASDAQ at 5132.52 to Oct. 9 2002, NASDAQ at 1108.49. $5 Trillion dollars lost in market value. 78% of the value of the NASDAQ lost. In the middle of it all, the worst attack on American soil since Pearl Harbor with the attack of the World Trade Center at 8:46 AM on 9-11-2001. A lot of dot.com companies with no real business and a lack of cash went down. The good stocks with real businesses went down too. CISCO declined 86%. Amazon went from 107 down to 7, (then back up to 400!). If you were not diversified and all in tech, then you were crushed. Could it happen again? Sure. But am I worried right now. No. Will we forget the World Trade Center attack? Never.F5 Networks (Symbol FFIV, $124.19) is a company that provides application delivery networking, (ADN), technology that secures and optimizes the delivery of network based applications. The issue with the above tech crash was that companies had no liquidity, no cash. F5 Networks, as of last quarter, has $611 Million dollars in cash. The security threat on our international bank systems and other vital businesses makes F5 Networks a very important company with very important products in 2014 and forward.Here are the rest of the numbers. F5 Networks has a PEG ratio of 1.43 and a Return on Equity Ratio of 20.10%. The company does $1.7 Billion dollars in Revenue and produces quarterly free cash flow of $132.72 Million. F5 operates at a quarterly Gross Profit Margin of 81.85%. The current Price Earnings ratio is 23.3. The 1 year EPS growth is 17.7% and the 3-5 year EPS growth has been 23.2%.
Stock price appreciation has been very good here. The YTD return so far for 2/3 of the year is 36.68%. The one year Total Return for the TTM , (trailing twelve months) has been 47.63% .
The 3 year Total Return is 57.76%. The company currently pays no dividend.
This market will need to consolidate gains for the last third of the year , but you will need a percentage of good quality growth tech names in your portfolio and F5 Networks should be one of them. I would just nibble here, until you get a little dip to commit more resources to FFIV. Geo-political events are also cranking up a bit here, so I would be very cautious with deployment of assets to the market for long term growth positions.
Phillies and Braves today in major league baseball. A pitchers match-up between the Braves-Teheran and the Phillies - Cole Hamels. Great pitchers. I will be watching and cheering for the Philadelphia Phillies.
Have a great week and last third of the investing year,
Freewilly
No comments:
Post a Comment