Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
It continues to be a market of also rans. A lot of the leaders of late 2011 have done little to nothing – in fact quite a few broke down today…. did not make me a happy camper. But the broken momo stocks of latter 2011 are flying – see Netflix (NFLX) up some 40%+ already this year. It’s not alone. A lot of big moves have come off horrible charts.
Today, I asked about 2 hrs ago why all the networking stocks were moving en masse. Apparently it was due to a positive note by Stifel Nicolas on Juniper Networks (JNPR) and F5 Networks (FFIV).
- The two companies got upbeat reviews from Stifel Nicolaus. On F5, analyst Sanjiv Wadhani wrote that “checks show that the pipeline is solid, which should bodes well for March quarter guidance.”
- Wadhani also said Juniper will likely report an in-line quarter, noting that bookings appeared to pick up in December due to AT&T and Verizon.
Juniper was up over 5% to $21.50s. So what just happened after the close? The company barfed – and is back down to $20. So much for those channel checks.
- Revenue is now expected to be in the range of $1,110 to $1,120 million, compared to the company’s prior expectation of $1,160 to $1,220 million. Non-GAAP EPS is now expected to be in the range of $0.26 to $0.28 per diluted share, compared to the company’s prior expectation of $0.32 to $0.36. Non-GAAP operating margin is expected to be below the company’s prior outlook of 21% to 23%…
The gentle nature of the indexes are hiding a lot of strange action under the surface…. the under currents remain treacherous.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
