Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Sourcefire's Risk-Reward Seems A Little Out Of Whack

Growing tech stocks rarely look cheap by conventional metrics, and Sourcefire (NASDAQ:FIRE) has been an all-too-rare beat-and-raise grower even through this slowdown in enterprise IT spending. Relative to the opportunities and valuations at other security players like Cisco (NASDAQ:CSCO), Check Point (NASDAQ:CHKP), Fortinet (NASDAQ:FTNT), and Palo Alto (NYSE:PANW), though, it's not so clear that Sourcefire is a major bargain at today's prices. Although the potential addressable market would indeed likely support strong revenue growth and the company's technology could make it an acquisition target, I'm not sure Sourcefire should have this sort of relative valuation.

Good Growth In A Tough Time

The fourth quarter of 2012 was a pretty tough...

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