In the world of technology stocks, it is often very lucrative to try to identify a name that is at the very beginning of a product cycle ramp. Unfortunately, this leads to the puzzling paradox that tech stocks often look "cheap" at the top and "expensive" at the bottom. While playing product cycles is usually lucrative, it's even better when the name in question had seen an extra helping of pain due to what should be near-term structural problems. It is my view that Emulex (ELX) is a name that offers significant upside on the back of two major upside drivers, coupled with a compelling valuation that serves to limit the downside risk.
Setting The Stage For...
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