Mike Trilivas

Brocade Communications Systems: There's Still Time To Get In

Brocade's a good company with solid fundamentals, and is a cash flow machine. The current number for the quarter is low. Stock buyback in place, over 40% of the revenue from overseas, a weak dollar and sales momentum should beat the number easily.

There's nothing speculative about Brocade even though Jim Cramer says there is but then again Jim has gotten Brocade wrong numerous times since last year. Clearly Brocade has been Jim's nemesis.

Brocade's coming out with 8Gb Fibre Channel products late summer/early fall and by all indications they will, again, lead the upgrade charge to this new technology.

The major concern with Brocade and the storage industry in general, is potential capex spending slowdown in the second half of the year so guidance here will be very important.

Bottom line...I believe Brocade's a long term Buy