Blue Coat Systems (BCSI) has plunged to levels not seen since Labor Day, and I believe that this could be a good entry. Note, BCSI isn't on my watchlist. The company has a new CEO, and the founder left shortly after he arrived, which was a little disturbing to me. The new guy has a lot of fixing to do, from what I recall, but he is a technology veteran who most recently got Avocent sold to EMC. There have been rumors ever since he showed up, but they are premature in my view. I do wonder somewhat about the competitive space, but the stock is cheap enough to bet on the new guy most likely. At 20, the stock trades at 1.3X EV/S. This could be an acquisition candidate, but they need to turn things around first. Somewhere between 18.5 and 20 looks like a good potential entry.
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