Told You So: Extreme Networks Warns, Stock Drops 9.5% After Hours (EXTR, FDRY, PKTR)

Includes: EXTR, FDRY, PKTR
by: Inventing Money

Inventing Money submits: Extreme Networks (NASDAQ:EXTR) pre-announced a revenue miss last night after the close. Company blamed weakness in U.S and Japan for the miss.

Like I said few days back, I would stay away from EXTR. The company has been in internal ups and downs, and from what I can gather it is not smooth sailing yet. I believe the weakness in U.S. and Japan was due to these internal issues -- not due to any broad market weakness.

Foundry Networks (FDRY) I believe is having a blast in the U.S, but Japan remains a issue and also I hear government was tough in opening up the purse as well. Hopefully it works out well for FDRY (meaning U.S. is strong enough to overcome the other issues) given the strong run up the stock's had -- otherwise it's time to book some profits there also.

The 8K EXTR filed on February 13th with details of severance plan for the executives and certain VPs upon change in control of EXTR still makes me think that the company might just get taken out. There are some seriously desperate people looking out there.

Seems like Packeteer, Inc. (PKTR) made the quarter, but the issue remains that it's in a tougher market with old technology so I am still staying away from that one.