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Editor's notes: Confusion over CRAY's Q1 obscures balance sheet strength and growth opportunities in big data for the computing company. The sell-off offers a good entry as CRAY's investments bear fruit.

Sometimes the stock market makes you just shake your head. Shares of Cray (CRAY) plunged 17 percent in early May after first quarter earnings apparently disappointed investors. To be fair, revenue did dip sharply year-over-year, and a 13 cent per share profit in Q12012 turned into a 20 cent per share loss in Q12013. And Cray had put together a very strong bull run -- rising all the way from $5 per share in October 2011 -- which perhaps led to some profit-taking:

All that said, the post-earnings drop made little sense. First off, Cray's main business is designing supercomputers; much of its revenues come from major projects, making quarter-to-quarter comparisons not...

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