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John Cofran
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John Cofran is a professional investor and money manager with 20+ years experience, and over $15,000,000 in assets under management. He is a former CPA applicant with degrees in Finance, Accounting and Economics from Boston College. In addition to building several highly successful private... More
  • The Next Big 'Cloud' 0 comments
    Aug 23, 2010 9:24 AM | about stocks: PAR, HPQ, XRTX
    This morning's $24 bid by Hewlett-Packard (HPQ) to acquire 3Par (PAR) once again has 'the cloud' in focus.

    By my calculation, HP's offer values 3Par at 160x estimated 2010 earnings per share. Wait, WHAT!?!?

    160x...???

    It's beginning to feel a lot like 1999 again. I know, I know... 'it's different this time'.

    Not really. It's never different. The names and faces change, but the story and the outcome remains the same.

    So what is an investor to do to catch a ride on the next 'cloud' without getting slammed back down to earth? One name investors should take a closer look at is Xyratex, Ltd (XRTX). It's Network Storage Solutions group provides investors just enough access and exposure to the 'cloud computing' trend without requiring a leap of faith.

    Trading at just 2.7x estimated 2010 earnings per share and a squeaky clean balance sheet, Xyratex may just be the Next Big Cloud.


    Disclosure: Long XRTX
    Themes: cloud Stocks: PAR, HPQ, XRTX
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