F5 Networks Should Be A Major Part of Imminent Tech Rally

F5 Networks (FFIV) is an incredible company which develops networking solutions that help customers manage traffic on their internet networks and applications. Its solutions improve the performance, availability, and security of internet applications.

The last time FFIV reported earnings (April 25th), the stock jumped $13 (19.5%) on spectacular results. The stock rose almost 15% back on Oct 25th of last year when the company reported earnings. In the last 52 weeks, the stock is up 100% and the 3 year performance shows a gain of 270%.

The reason for these monster gains is the company's tendency to keep growing earnings at around 40%. With no debt, and over $10 a share in cash, the stock trades at 30 times 2008 earnings - a reasonably cheap valuation. As we enter the best time for tech stocks, F5 is well positioned to move close to $100. The company reports earnings on July 25th and I believe that it should be bought at any dip prior to that event.

FFIV 1-yr chart: