InvestBaboo

Dell Deal Proves Brocade's Unique Position

CorrectaMundo! What is surprising/shocking is that BRCD hasn't been taken out yet! Whosoever owns Brocade can make a serious play for the enterprise market to grab some of Cisco's juicy share provided they bring along a complimentary product portfolio with them. I can think of several names that could have taken BRCD out but strangely that has not happened yet.

Expect a Selloff for Brocade

You are kidding me. Brocade's signing of OEM deals over the past several weeks is in the public domain. Why, just this week it signed a deal with NetApp. A deal with Dell is reportedly in the works but rumor has it that Dell wants more than just an OEM deal. An OEM deal with HP has been in the works for a long time but not announced yet (we will have to find out why during the conf call). One of the best sources for checking rumors is TheFlyOnTheWall.


On Aug 17 06:54 PM Bill L. wrote:

> Can you send me a link on this?

Expect a Selloff for Brocade

What you have not taken into account in the short term is the power of leverage made available to Brocade with the multitude of OEM deals. None of these are cross channel (no channel conflict) -- they are all additive. This is the reason (as it is rumored) that Brocade has kept suitors at bay and seeks future as an independent entity where it believes it can deliver far higher value to shareholders.

Expect Brocade to significantly revise upward its future forecast which will cause a runup in the stock and break of the resistance at 9 and change. From thereon it is uncharted waters as the stock will seek new levels without historical baggage. Earnings coming this Thursday.

Expect a Selloff for Brocade

You are comparing apples with oranges.

Brocade is a very different company now. They have acquired Foundry which gave them a whole new range of products. Also, from the Brocade side of the house have come a whole new range of products that have taken market share away from Cisco. Their OEM strategy is new and is getting them major vendor one after another.

If you had applied this logic to Apple which was range bound for a long time then it would have never traded at current levels. Your logic makes no sense.