BloggingStocks

Juniper Networks (JNPR) gets cautious commentary

Brent Archer — 2008-04-04T15:30:00+00:00

Filed under: Analyst reports, Analyst initiations, Options, Technical Analysis, Juniper Networks (JNPR)

Juniper Networks, Inc. (NASADQ: JNPR) stock is relatively flat today after an analyst at Friedman, Billings, and Ramsey initiated coverage on the stock with a "Market Perform" rating, saying he expects modest growth for the company over the next few years. The analyst said profit forecasts by other analysts are realistic, but there is reason to be cautious on JNPR, since other vendors have noted increasing caution by customers. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on JNPR.

After hitting a one-year low of $19.86 last April, the stock hit a one-year high of $37.95 in October. This morning, JNPR opened at $24.30. So far today the stock has hit a low of $23.69 and a high of $24.39. As of 12:40, JNPR is trading at $24.39, up 1 cent (0.04%). The chart for JNPR looks neutral and improving, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $31 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.1% return in 3 and a half months as long as JNPR is below $31 at July expiration. Juniper would have to rise by more than 27% before we would start to lose money. Learn more about this type of trade here.

JNPR hasn't been above $31 since January and has shown resistance around $26 recently. This trade could be risky if the company's earnings (due out on 4/24) are a positive surprise, but even if that happens, this position could be protected by resistance JNPR might find at its 200 day moving average, which is currently around $31.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in JNPR.

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Analyst initiations: CSCO, NYX, NDAQ and COGI

Eric Buscemi — 2008-04-04T11:10:00+00:00

Filed under: Analyst reports, Cisco Systems (CSCO), NYSE Euronext (NYX), Analyst initiations, Juniper Networks (JNPR)

MOST NOTEWORTHY: Cisco Systems, NYSE Euronext, Nasdaq and Cognicase were today's noteworthy initiations:

Friedman Billings believes Cisco Systems (NASDAQ: CSCO) is well-positioned to take advantage of "Business 2.0" applications and to gain share in a slower economic environment. The firm initiated shares with an Outperform rating and $31 target.
NYSE Euronext (NYSE: NYX) and Nasdaq (NASDAQ: NDAQ) were assumed with a Neutral rating and $72 target and $44 target, respectively, at UBS. The firm cited increasing competition and moderating volumes.
Deutsche Bank believes Cognicase (COGI) is one of the few carriers offering high-capacity commercial Internet access to enterprise customers at a discount to nearly all of its competitors. Shares were initiated with a Buy rating and $23 target.

OTHER INITIATIONS:

China Housing (OTCBB: CHLN) was initiated at Merriman with a Buy rating.
Goldman started Juniper (NASDAQ: JNPR) with a Market Perform rating and $27 target.
Suntrust initiated hhgregg (NYSE: HGG) with a Buy rating and $16 target.

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Analyst downgrades: MOT, CPKI and STX

Eric Buscemi — 2008-03-27T11:32:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Motorola (MOT), Juniper Networks (JNPR), Calif Pizza Kitchen (CPKI)

MOST NOTEWORTHY: Motorola, California Pizza, and Seagate were today's noteworthy downgrades:

Banc of America downgraded shares of Motorola (NYSE: MOT) to Neutral from Buy, despite believing the split into two businesses could ultimately unlock value, as they see few catalysts over the next year to lift shares. Banc of America also sees risk to Q1 earnings and lowered their target to $11 from $15.
Friedman Billings lowered California Pizza Kitchen (NASDAQ: CPKI) to Market Perform from Outperform citing sluggish trends in its core markets.
Seagate (NYSE: STX) was cut to Neutral from Outperform at Baird, citing weakening industry conditions throughout the month of March.

OTHER DOWNGRADES:

Goldman lowered the Communications Tech sector to Neutral from Attractive, and also downgraded Juniper Networks (NASDAQ: JNPR) and Starent Networks (NASDAQ: STAR) to Neutral from Buy, and Aruba Networks (NASDAQ: ARUN) to Sell from Neutral.

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Juniper Networks (JNPR) trade idea after upgrade

Brent Archer — 2008-02-25T12:33:00+00:00

Filed under: Major movement, Analyst upgrades and downgrades, Options, Technical Analysis, Juniper Networks (JNPR)

Juniper Networks, Inc. (NASDAQ: JNPR) shares are trading higher today after RBC Capital Markets upgraded the stock to Sector Perform from Outperform as noted by our own Eric Buscemi. We always think what kind of trade might make sense in light of the news. If you think that the company's stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JNPR.

After hitting a one-year low of $17.21 in March, the stock hit a one-year high of $37.95 in October. JNPR opened this morning at $26.91. So far today the stock has hit a low of $26.54 and a high of $27.36. As of 11:20, JNPR is trading at $27.16, up 97 cents (3.7%). The chart for JNPR looks bearish but improving slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an April bull-put credit spread below the $22.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade will make an 8.7% return in just two months as long as JNPR is above $22.50 at April expiration. Juniper would have to fall by more than 17% before we would start to lose money.

JNPR hasn't been below $22.50 since last May and has shown support around $25 recently. This trade could be risky if JNPR continues its recent downward slide, but even if that happens, this position could be protected by the support the stock has found just below $25 over the past month.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in JNPR.

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Analyst upgrades: DNA, YUM, JNPR and BJS

Eric Buscemi — 2008-02-25T11:27:00+00:00

Filed under: Analyst upgrades and downgrades, Yum Brands (YUM), Genentech Inc (DNA), Juniper Networks (JNPR)

MOST NOTEWORTHY: Genentech, ESS Technology and SemGroup Energy were today's noteworthy upgrades:

Rodman & Renshaw upgraded Genentech (NYSE: DNA) to Outperform from Market Perform citing the FDA's approval of Avastin in mBC.
Jefferies raised ESS Technology (NASDAQ: ESST) to Hold from Underperform to reflect the offer from Imperium Partners.
Citigroup upgraded shares of SemGroup Energy (NASDAQ: SGLP) to Buy from Hold on valuation, as they believe the significant accretion expected from the partnership's recent asphalt terminal acquisition is not priced into the stock.

OTHER UPGRADES:

Yum! Brands (NYSE: YUM) was raised to Buy from Neutral at UBS.
RBC Capital upgraded Juniper (NASDAQ: JNPR) to Outperform from Sector Perform.
Goldman raised its rating on BJ Services (NYSE: BJS) to Neutral from Sell.

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Microsoft rotates senior management

Douglas McIntyre — 2008-01-11T09:35:00+00:00

Filed under: Management, Industry, Google (GOOG), Microsoft (MSFT), Juniper Networks (JNPR)

Microsoft's (NASDAQ: MSFT) business division is one of its most profitable operations. Stephen Elop, an executive at network equipment company Juniper (NASDAQ: JNPR), will come to Redmond to head the part of the company that produces Office software applications. Jeff Raikes, who runs the business now, has been at the company since 1981.

It would be easy to assume that Mr. Raikes has made hundreds of millions of dollars at Microsoft, and would simply like to take his cash and have a little rest. But, as The Wall Street Journal points out, "a host of new competitors try to pick away at Office with Internet services." That list of competitors is lead by Google (NASDAQ: GOOG).

Microsoft has demonstrated through recent M&A activity that it is willing to increase its revenue beyond its traditional software business in areas such as search and internet advertising. But for the next several years the company's cash flow is going to come from its traditional products like Windows and Office. These now operate using the processing power and storage of the computers where they sit. Google is putting products into the market that operate on the PC but use the company's servers to do much of the work.

Raikes may be leaving because you can't teach an old dog new tricks. With Google coming after it, Microsoft needs to hope that it can teach its new dogs new tricks.

Douglas A. McIntyre is an editor at 247wallst.com.

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Before the bell: CVX, FDX, CAL, DELL, JNPR, BBY, MSFT ...

Melly Alazraki — 2008-01-11T08:33:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Microsoft (MSFT), Dell (DELL), Nokia Corp. (NOK), Best Buy (BBY), Chevron Corp (CVX), FedEx Corp (FDX), Contl Airlines'B' (CAL), Honeywell Intl (HON), Juniper Networks (JNPR)

Before the bell: Futures lower on new of more writedowns

Chevron Corp. (NYSE: CVX) said on Thursday it expects to earn a bigger profit in the fourth quarter than it did in the third because of higher energy prices.

FedEx Corp. (NYSE: FDX) said Thursday it will keep relying on contract drivers for its ground delivery division despite a challenge by the Internal Revenue Service, which assessed tax penalties and interest of $319 million.

Notable analyst calls this morning from Briefing.com:

Continental Airlines (NYSE: CAL), which already soared over 23% on airline merger rumors, was upgraded by Bear Stearns from Peer Perform to Outperform.
Dell (NYSE: DELL) was upgraded by JP Morgan from Neutral to Overweight (really?). Shares are gaining 1.2% in premarket trading.
Honeywell (NYSE: HON) was upgraded by JP Morgan from Underweight to Neutral.
Nokia (NYSE: NOK) was upgraded by RBC Capital Markets from Sector Perform to Outperform. Stock declining 1.5% in premarket trading.
Juniper Networks Inc. (NASDAQ: JNPR) is losing its chief operating officer to Microsoft. Shares are down 7.9% in premarket trading (8:03 a.m.) after two downgrades from JP Morgan and JMP Securities from Overweight to Neutral and from Market Outperform to Market Perform respectively.

Microsoft Corp. (NASDAQ: MSFT) said Thursday that Jeff Raikes, the top executive in its business software division, will retire in September and be replaced by Stephen Elop, chief operating officer at Juniper.

Best Buy (NYSE: BBY) said this morning December same-store sales were up 1.5% as international strength overcame domestic weakness.

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Salesforce.com (CRM) stock price defines a bullish 'pennant'

Larry Schutts — 2007-12-06T14:12:00+00:00

Filed under: Earnings reports, Time Warner (TWX), Staples Inc (SPLS), Technical Analysis, Juniper Networks (JNPR), Stocks to Buy

Salesforce.com (NYSE: CRM) provides business clients with on-demand customer relationship management services. Its hosted applications offer a rapidly deployable alternative to buying and maintaining enterprise software. Subscribers use the firm's suite of nearly 600 programs to systematically record business data, manage customer accounts, track sales leads, evaluate marketing campaigns and provide post-sale services. The company's applications are offered in fourteen languages and can be accessed from PCs, cellular phones and personal digital assistants. Clients include Juniper Networks (NASDAQ: JNPR), Staples (NASDAQ: SPLS) and Time Warner (NYSE: TWX).

The company pleased investors last month, when it reported Q3 EPS of 5 cents and revenues of $192.8 million. Analysts had been looking for 3 cents and $190.6 million. The revenue figure pushed this year's nine-month sales above last year's twelve-month total. Management also predicted in-line earnings for Q4 and better than expected profits for the full year.

CRM shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with eleven "strong buys", six "buys", fourteen "holds" and three "sells". Analysts see a 43% average annual growth rate, through the next five years. The CRM Sales Growth rate (48.25%) and EPS Growth rate (0.05 vs 0.00 y/y) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 80% of the outstanding shares. Over the past 52 weeks, the stock has traded between $35.55 and $58.00. A stop-loss of $48.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Juniper Networks (JNPR) higher as technology rebounds

Brent Archer — 2007-11-13T12:23:00+00:00

Filed under: Good news, Industry, Options, Technical Analysis, Juniper Networks (JNPR), Technology

Juniper Networks, Inc. (NASDAQ: JNPR) shares are trading higher this morning as tech stocks are rebounding from recent losses. Some analysts felt the industry had a pull-back coming simply because those stocks had been safe havens throughout much of the financial sector's woes. Today, positive movement by Microsoft (NASDAQ: MSFT), Cisco (NASDAQ: CSCO) and Oracle (NASDAQ: ORCL) indicates that the mini-correction could be through. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JNPR.

After hitting a one-year high of $37.95 in October, the stock has declined over the past month. JNPR opened this morning at $30.05. So far today the stock has hit a low of $29.78 and a high of $30.35. As of 11:05, JNPR is trading at $30.19, up $0.50 (1.7%). The chart for JNPR looks neutral and deteriorating, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $25 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make an 8.7% return in just 6 weeks as long as JNPR is above $25 at December expiration. Juniper would have to fall by more than 17% before we would start to lose money.

JNPR hasn't been below $25 since July and has shown support around $29.50 recently. This trade could be risky if the company's recent slide continues, but even if that happens, this position could be protected by support the stock formed around $30 in July and August. Plus, JNPR is not due to report earnings again until January, which is well after this position expires.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in JNPR or CSCO. He does control bullish positions in ORCL and MSFT.

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Riverbed evaporates

Tom Taulli — 2007-10-30T09:43:00+00:00

Filed under: Microsoft (MSFT), Cisco Systems (CSCO), Oracle Corp (ORCL), Juniper Networks (JNPR)

In just a few years, Riverbed Technology (NASDAQ: RVBD) has built a strong technology offering, which helps move large files -- such as Microsoft (NASDAQ: MSFT) PowerPoints, SAP (NYSE: SAP) data files and so on -- across networks at high speeds. In fact, last week I had a chance to meet the CEO, Jerry Kennelly, who was quite upbeat even though Riverbed's stock price was down about 28% to $34.61.

Although, based on the fiscal Q3 results, things seem fine. Revenues spiked 158% to $63.3 million and net income was $2.8 million, or $0.04 per share, which compares to a net loss of $3.1 million, or $0.16 per share in the same period a year ago. About $9.7 million of Q3's expenses came from stock option compensation.

Riverbed has continued its innovation. Back in August, the company launched its Steelhead Mobile product, which improves the performance of file downloads for laptops. Riverbed claims that about 41% of workers in the US are mobile, such as in remote offices, hotel rooms, coffee shops and so on.

Another key product release is RiOS 4.1, which has added security features, disaster recovery, and optimization for Oracle Corp (NASDAQ: ORCL) products.

Such products should help deal with the fierce competitive environment, which includes rivals like Cisco Systems (NASDAQ: CSCO), Juniper Networks (NASDAQ: JNPR), and Packeteer Inc. (NASDAQ: PKTR). "A big part of my job is finding top engineers and getting out of their way," said Kennelly, in a Fool interview.

So with all the good news, why is Riverbed's stock ailing? I think the main reason is that investors expected too much. As Riverbed gets larger, it is not as easy to post sizzling top-line growth. Besides, the investments in new products and the salesforce can mute profit growth.

Even though Riverbed's valuation is much lower, I still think the stock price could languish for awhile. After a big plunge, it's not easy for investors to warm up again, especially for momentum players who have flocked to the stock. So, for investors, there's probably no rush to get back into this one -- at least for now.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

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Earnings highlights: Apple (AAPL), Merrill Lynch (MER), UAL (UAUA), and many others

Trey Thoelcke — 2007-10-27T11:40:00+00:00

Filed under: Earnings reports, Microsoft (MSFT), Apple Inc (AAPL), Amazon.com (AMZN), Motorola (MOT), Estee Lauder (EL), Halliburton (HAL), Netflix, Inc. (NFLX), New York Times'A' (NYT), Aetna Inc (AET), American Express (AXP), Anheuser-Busch Cos (BUD), Avery Dennison Corp (AVY), Boeing Co (BA), Bristol-Myers Squibb (BMY), Merrill Lynch (MER), Coach Inc (COH), Comcast Cl'A' (CMCSA), Countrywide Financial (CFC), United Parcel'B' (UPS), Merck and Co (MRK), Lockheed Martin (LMT), Hasbro Inc (HAS), Amgen Inc (AMGN), UAL Corp (UAUA), Dow Chemical (DOW), Texas Instruments (TXN), EMC Corp (EMC), Juniper Networks (JNPR), JetBlue Airways (JBLU), General Dynamics Corp (GD)

The earnings crunch continues to roll along, and here are a some highlights of this past week's earnings coverage from BloggingStocks:

Aetna Inc. (NYSE: AET) beat expectations and raised its full-year guidance.
Amazon.com Inc. (NASDAQ: AMZN) beat estimates by a penny and offered a poor outlook.
American Express Co. (NYSE: AXP) delivered a positive surprise, with profits up 10%.
Amgen Inc. (NASDAQ: AMGN) beat estimates, but revenue was flat.
Anheuser-Busch Cos. (NYSE: BUD) beat expectations on strength of international sales and partner brands.
Apple Inc. (NASDAQ: AAPL) blew past expectations. See our conference call live blog.
Avery Dennison Corp.'s (NYSE: AVY) net sales up, EPS down, both due to the Paxar acquisition.
Baidu.com Inc. (NASDAQ: BIDU) beat expectations, but wariness about its growth potential lingers.
Boeing Co. (NYSE: BA) beat expectations but lowered its guidance.
Bristol-Myers Squibb (NYSE: BMY) beat expectations on the strength of Plavix sales.
CNH Global's (NYSE: CNH) profit nearly doubled, beating estimates by 15%.
Coach Inc. (NYSE: COH) beat estimates by a penny, but offered a conservative outlook for the holidays.
Comcast Corp. (NASDAQ: CMCSA) met EPS expectations but cut its cash flow forecast.
Countrywide Financial Corp. (NYSE: CFC) reported a $1.2 billion loss, but predicts a profit in the next quarter.

Dow Chemical Co. (NYSE: DOW) fell short of estimates, due to taxes and research costs.
EMC Corp.'s (NYSE: EMC) profit soared on increased sales and the sale of VMWare.
Estee Lauder Companies Inc. (NYSE: EL) beat estimates even though profits fell.
General Dynamics Corp.'s (NYSE: GD) net income rose 25%, and it raised its full-year outlook.
GlaxoSmithKline (NYSE: GSK) announced job cuts after profits fell 5.8%.
Halliburton Co. (NYSE: HAL) reported last Sunday and easily beat Wall Street estimates.
Hasbro Inc.'s (NYSE: HAS) profits soared 62% on higher sales led by Transformers.
JetBlue Airways Corp. (NASDAQ: JBLU) returned to the black, with net income of $23 million.
Juniper Networks Inc. (NASDAQ: JNPR) only beat estimates by a penny, despite a profit rise of 46%.
Lexmark International (NYSE: LXK) blamed its weak third quarter on poor printer sales.
Lockheed Martin Corp. (NYSE: LMT) easily beat estimates and boosted its ROIC projection.
Merck & Co. (NYSE: MRK) posted better-than-expected results, despite ongoing Vioxx-related litigation.
Motorola Inc. (NYSE: MOT) beat expectations and raised its full-year guidance.
Merrill Lynch and Co. (NYSE: MER) took a big hit from the subprime mortgage mess.
Microsoft Corp.'s (NASDAQ: MSFT) encouraging results easily beat Wall Street expectations.
Netflix Inc.'s (NYSE: NFLX) profit rose 23%, beating analysts' EPS expectations by eight cents.
New York Times Co. (NYSE: NYT) doubled EPS estimates in its strong third quarter report.
Panera Bread Co. (NASDAQ: PNRA) net income up 10%, revenue up 35%.
Texas Instruments Inc.'s (NYSE: TXN) profits rose, but revenues were down.
UAL Corp.'s (NASDAQ: UAUA) profits soared 75%, beating EPS estimates by eight cents.
United Parcel Service (NYSE: UPS) had a solid quarter despite the sluggish economy.
Waste Management Inc. (NYSE: WMI) reported losses due to labor issues and the housing slowdown.

While Jonathan Berr looks for the market's heroes and villains, Sheldon Liber and Georges Yared offer their thoughts on the value of AMZN. And Merrill Lynch's results prompt both Jim Cramer and Zac Bissonnette to ponder.

Upcoming results to watch for include: Verizon Communications Inc. (NYSE: VZ), Procter & Gamble Co. (NYSE: PG), Exxon Mobil Corp. (NYSE: XOM), Sirius Satellite Radio Inc. (NASDAQ: SIRI), Viacom Inc. (NYSE: VIA), U.S. Steel Corp. (NYSE: X), MGM Mirage (NYSE: MGM), and Kraft Foods (NYSE: KFT).

Visit AOL Money & Finance for more earnings coverage.

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Juniper Networks' earnings not good enough

Brent Archer — 2007-10-24T11:25:00+00:00

Filed under: Major movement, Earnings reports, Bad news, Options, Technical Analysis, Juniper Networks (JNPR)

Juniper Networks, Inc. (NASDAQ: JNPR) is sinking after the company's earnings release yesterday evening. JNPR reported a 46% jump in quarterly profit, but only beat EPS estimates by a penny, far less than what many optimistic investors, who drove the stock up 3.5% yesterday prior to the earnings release, had expected. A Morgan Keegan analyst cautioned that Q3 expenses grew too much, and there is some worry that the company's expenses aren't under sufficient control. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on JNPR.

The stock has climbed steadily over the past seven months, reaching a 52-week high of $37.95 earlier this month. This morning, JNPR opened at $35.17. So far today the stock has hit a low of $33.43 and a high of $35.17. As of 10:40, JNPR is trading at $33.95, down $3.19 (-8.6%). The chart for JNPR looks bullish but deteriorating, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a December bear-call credit spread above the $40 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in two months as long as JNPR is below $40 at December expiration. Juniper would have to rise by more than 17% before we would start to lose money. Learn more about this type of trade here.

JNPR has not been above $40 since the heady days of the tech bubble and has shown some resistance around $37 recently. This trade could be risky if yesterday evening's earnings turn out to be better than they look at first glance, but even if that happens, this position could be protected by the strong resistance formed around $37, where JNPR flattened out and topped over the past two months.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in JNPR.

Visit AOL Money & Finance for more earnings coverage

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Option update: Wal-Mart volatility slightly elevated into analyst meeting

Paul Foster — 2007-10-19T16:25:00+00:00

Filed under: Wal-Mart (WMT), Options, Juniper Networks (JNPR), S and P 500

Wal-Mart (NYSE: WMT) is hosting its annual analyst meeting on October 23-24. Bear Stearns says: "Our WMT wishlist includes 1) reduce net square footage growth in the U.S. to 0%; 2) sell Asda; and 3) exit Japan." Goldman upgraded WMT to Buy from Neutral on 10/17/07. WMT November option implied volatility of 25 is above its 26-week average of 23 according to Track Data, suggesting slightly larger price risk.

Juniper (NASDAQ: JNPR), a provider of internet infrastructure solutions to internet service providers and other telecommunication services providers, will report third quarter EPS on 10/23. JNPR November option implied volatility of 53 is above its 26-week average of 40 according to Track Data, suggesting larger price risks.

Volatility Index S&P 500 Options-VIX is recently up 3.05 to 21.55.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Check Point Software Technologies (CHKP): IT security specialists

Larry Schutts — 2007-09-13T14:38:00+00:00

Filed under: Analyst upgrades and downgrades, Cisco Systems (CSCO), Symantec Corp (SYMC), Technical Analysis, Juniper Networks (JNPR), Stocks to Buy, Israel

When it comes to protecting your firm's computer network, you want to do business with a security software company experienced at dealing with complex corporate systems. There is an outfit in Israel that knows those ropes. Among the thousands of businesses on its customer list are all of the Fortune 100 companies.

Check Point Software Technologies (NASDAQ: CHKP) provides security software used to protect corporate networks. Products verify remote users, control access, block viruses and allow firms to establish virtual private networks (VPN) for secure communications, bandwidth management and enhanced performance. Competitors include Cisco Systems (NASDAQ: CSCO), Juniper Networks (NASDAQ: JNPR) and Symantec Corporation (NASDAQ: SYMC).

The company received some good news last week, when Friedman Billings upgraded the shares from "market perform" to "outperform" and boosted its price target to $28. The broker noted that Check Point was starting to see a re-acceleration in business from its strengthened VPN/firewall product portfolio and believed the company was positioned to benefit from an anticipated surge in endpoint security spending over the next year.

The stock popped above 30/50/90-day moving average resistance on the news and then passed into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Altogether, brokers now recommend the stock with three "strong buys," six "buys," 13 "holds" and two "sells." The CHKP Price to Book ratio (3.05), Price to Free Cash Flow ratio (15.32), Sales Growth rate (26.83%), EPS Growth rate (40.74%), Operating Margin (41.04%), Net Profit Margin (41.55%) and Net Income per Employee ($170.1k) compare favorably with industry, sector and S&P 500 averages. Institutions own about 61% of the outstanding shares. The stock is one of those used to calculate the Nasdaq 100 Index. Over the past 52 weeks, it has traded between $18.53 and $25.99. A stop-loss of $21.45 looks good here. Note that the firm is expected to announce Q3 results in mid-October.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Option update: JNPR & MOT's options suggest no surprises at investor meetings

Paul Foster — 2007-08-31T17:15:00+00:00

Filed under: Motorola (MOT), Options, Juniper Networks (JNPR)

Juniper Networks (NASDAQ: JNPR) option volatility Elevated at 43 into 9/6 investor meeting. JNPR, a provider of internet infrastructure solutions to internet service providers and other telecommunication services providers, is recently down .04 to $32.74. JNPR will host an investor gathering in Sunnyvale, CA. on 9/6. Bank of America-BAMO says, "We don't expect any update to JNPR's financial guidance, we do expect a positive tone highlighting new growth opportunities resulting from new products and carrier NGN builds." JNPR over all option implied volatility of 43 is above its 26-week average of 36, according to Track Data, suggesting larger price risks.

Motorola (NYSE: MOT) implied volatility Flat into 9/7 investor meeting. MOT is hosting an analyst day in New York on 9/7. BAMO says, "we expect management to discuss its business strategy and market trends, and to highlight a number of new handsets." MOT over all option implied volatility of 30 is near its 26-week average, according to Track Data, suggesting non-directional risk.

Daily options update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

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Cisco Systems (CSCO) looks like a buy

Larry Schutts — 2007-08-13T12:47:00+00:00

Filed under: Earnings reports, Analyst upgrades and downgrades, Microsoft (MSFT), Cisco Systems (CSCO), Intel (INTC), International Business Machines (IBM), Nortel Networks (NT), Alcatel-LucentADS (ALU), Technical Analysis, Juniper Networks (JNPR), Stocks to Buy

Internet networking is essential to the successful operation of businesses, governments, educational institutions and other forms of modern human endeavor. The world's leading provider of networking hardware is headquartered in San Jose, California.

Cisco Systems (NASDAQ: CSCO) provides IP-based networking products and related devices used to transport data, voice and video around the world. Its main offerings are routers and switching systems. The former interconnect computer networks and the latter connect end users, servers and workstations. Other products include remote access servers, IP telephony equipment, optical networking components and security systems. Primary customers are large enterprises and telecommunications service providers. Cisco has strategic alliances with numerous major technology companies, including IBM (NYSE: IBM), Intel (NASDAQ: INTC) and Microsoft (NASDAQ: MSFT). Competitors include Alcatel-Lucent (NYSE: ALU), Juniper Networks (NASDAQ: JNPR) and Nortel Networks (NYSE: NT).

The firm pleased the Street last week, when it announced fiscal Q4 EPS of 36 cents and revenues of $9.43 billion. Analysts had been expecting 35 cents and $9.27 billion. Management also guided Q1 revenues to $9.45-$9.55 billion ($9.30B consensus) and raised long term revenue guidance to 13-16% from 10-15%. Nine brokerages subsequently termed the stock a "buy" and declared price targets of $35 to $38. The share price popped on the news and has since been consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Altogether, brokers now recommend the issue with six "strong buys," seventeen "buys," nine "holds" and one "sell." Analysts expect a 17% growth rate, through the next year. The Cisco price to free cash flow ratio (21.53), sales growth rate (18.15%), EPS growth rate (28.57%), operating margin (24.69%), net profit margin (21.00%), return on assets (15.17%), return on investment (20.38%) and return on equity (26.48%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 70 percent of the outstanding shares. The stock is one of those used to calculate the S&P 100 Index, the S&P 500 Index, the Nasdaq 100 Index and the AMEX Internet Index. Over the past 52 weeks, it has traded between $19.37 and $32.47. A stop-loss of $26.95 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Aerohive buzzes with $20 million

Tom Taulli — 2007-08-01T15:25:00+00:00

Filed under: Cisco Systems (CSCO), Research in Motion (RIMM), Juniper Networks (JNPR)

One of the hottest IPOs of the year is Aruba Networks Inc. (NASDAQ: ARUN), which is up 82.5% since its debut in late March. The company builds technologies to secure large corporate wireless networks. With the proliferation of devices - such as Research in Motion's (NASDAQ: RIMM) BlackBerry - it is a big market opportunity.

Well, another firm wants a piece of the action: Aerohive Networks.

In fact, the company recently raised its second round of venture capital for $20 million. The lead investor is the venerable Kleiner Perkins

Aerohive develops so-called "cooperative control" wireless LAN (WLAN) access points, which it makes it easier for companies to deploy wireless services - and at lower costs. This is done by sharing information in optimized groups, which are called "hives."

No doubt, Aerohive faces intense competition, such as from Cisco Systems Inc. (NASDAQ: CSCO). But in the WLAN market, there is always room for a better product.

Besides, Aerohive has a top notch management team. Keep in mind that their last deal - NetScreen - sold for a cool $4 billion to Juniper Networks (NASDAQ: JNPR).

To check out more recent venture capital fundings, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

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Avici Systems: Serving internet service providers

Larry Schutts — 2007-07-27T13:27:00+00:00

Filed under: Earnings reports, Cisco Systems (CSCO), Intel (INTC), Nortel Networks (NT), Alcatel-LucentADS (ALU), Technical Analysis, Juniper Networks (JNPR), Stocks to Buy

Whether it's in the carrier-class router business, or their upcoming network software specialty, there is a North Billerica, Massachusetts outfit that is in there pitching. The company provides IP solutions to some of the world's leading service providers.

Avici Systems (NASDAQ: AVCI) provides high-speed data networking equipment that enables service providers to transmit data, voice, and video. The firm's Terabit router transmits large volumes over core fiber-optic communications networks. Other models are used by service providers with smaller core networks. The company is in the process of phasing into the network management software business. Avici has a technology partnership with Intel (Nasdaq: INTC) and is a preferred supplier of IP core routers for Nortel Networks (NYSE: NT). Alcatel-Lucent (NYSE: ALU), Cisco Systems (NASDAQ: CSCO) and Juniper Networks (NASDAQ: JNPR) are competitors.

The company pleased investors last week, when it reported Q2 EPS of 81 cents and revenues of $29.6 million. Analysts had been expecting 21 cents and $15.8 million. Management also guided FY07 revenues to $110-125 million ($60.16 million consensus).

The stock popped on the news and is now forming a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Analysts see a 20% average annual growth rate, through the next five years. The AVCI P/E ratio (7.55), Price to Sales ratio (1.83), Price to Book ratio (2.03), Price to Cash Flow ratio (5.87), Price to Free Cash Flow ratio (8.58%), EPS Growth rate (202.18%), Operating Margin (20.60%), Net Profit Margin (23.95%), Return on Assets (24.70%), Return on Investment (32.48%), Return on Equity (32.48%) and Net Income per Employee ($196k) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 71% of the outstanding shares. Over the past 52 weeks, AVCI has traded between $6.47 and $13.96. A stop-loss of $9.10 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Juniper Networks: Specialists in computer network infrastructures

Larry Schutts — 2007-07-24T14:35:00+00:00

Filed under: Earnings reports, Cisco Systems (CSCO), McDonald's (MCD), Nortel Networks (NT), Alcatel-LucentADS (ALU), Dow Chemical (DOW), Technical Analysis, Juniper Networks (JNPR), Stocks to Buy

Whether it's over the Internet, or through the office network, getting the right computer signal to the right place is a matter most of us liken to magic. One of the world's best known performers of such legerdemain is headquartered in Sunnyvale, California.

Juniper Networks (NASDAQ: JNPR) is engaged in the design, development and sale of Internet Protocol routers. These enable service providers and other network-intensive businesses to support and deliver services and applications on an integrated network. Other offerings include network traffic management software, virtual private network appliances, application acceleration platforms and firewall devices. Customers include wireline, wireless, and cable operators; Internet content providers; general businesses; and public agencies. McDonald's (NYSE: MCD) and Dow Chemical (NYSE: DOW) are among the firm's enterprise customers. Alcatel-Lucent (NYSE: ALU), Cisco Systems (NASDAQ: CSCO) and Nortel Networks (NYSE: NT) are competitors.

The company pleased investors last week, when it reported Q2 EPS of 20 cents and revenues of $664.9 million. Analysts had been expecting 20 cents and $649.5 million. Management also guided Q3 EPS to 21 cents (21 cent consensus), Q3 revenues to $695-715 million ($674.56M consensus), FY07 EPS to 82-83 cents (81 cent consensus) and FY07 revenues to $2.73-$2.76 billion ($2.67B consensus).

The stock popped on the news and is now forming a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with five "strong buys", eight "buys", fourteen "holds" and one "sell". Analysts see a 28% growth rate, through the next year. The JNPR Price to Book ratio (3.66), Price to Free Cash Flow ratio (28.22), Sales Growth rate (17.17%) and EPS Growth rate (106.96%) compare favorably with industry, sector and S&P 500 averages.

The stock is one of those used to calculate the S&P 500 Index, the Nasdaq 100 Index and the AMEX Internet Index. Institutional investors hold about 85% of the outstanding shares. Over the past 52 weeks, JNPR has traded between $12.09 and $31.20. A stop-loss of $26.60 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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Analyst upgrades 7-19-07: DSW, JNPR and PFE

Kevin Shult — 2007-07-19T10:48:00+00:00

Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Good news, Pfizer (PFE), Juniper Networks (JNPR)

MOST NOTEWORTHY: St. Jude Medical (STJ), Juniper Networks (JNPR), Satyam Computer (SAY), Clearwire (CLWR) and Citrix Systems (CTXS) were today's noteworthy upgrades:

St. Jude Medical's (NYSE: STJ) upgrade to Outperform from Market Perform at Wachovia was based on signs of an ICD recovery and reasonable valuation.

Baird upgraded shares of Juniper (NASDAQ: JNPR) to Outperform from Neutral following better-than-expected guidance; Goldman upgraded Juniper to Buy from Neutral.

Satyam (NYSE: SAY) was upgraded to Positive from Neutral at Susquehanna citing better than expected growth.

Clearwire (NASDAQ: CLWR) was upgraded to Outperform from Peer Perform at Bear Stearns following the announcement that Sprint (S) and Clearwire will form a Nationwide 4G/Wimax Network.

Citrix (NASDAQ: CTXS) was upgraded at Jefferies to Buy from Hold as they believe the strong customer response to Presentation Server Platinum Edition and the pipeline buildup related to NetScaler 8.0 bode well for the second half of 2007...

OTHER UPGRADES:

Lehman raised DSW Inc (NYSE: DSW) to Overweight from Equal-Weight.

Goldman upgraded shares of Labor Ready (NYSE: LRW) to Neutral from Sell.

Rodman upgraded shares of Encysive Pharma (NASDAQ: ENCY) to Market Perform from Underperform.

Lazard upgraded Cubist Pharmaceuticals (NASDAQ: CBST) to Neutral from Sell.

Selective Insurance (NASDAQ: SIGI) was upgraded at Fox Pitt to In Line from Underperform.

Raymond James upgraded Pfizer (NYSE: PFE) to Strong Buy from Market Perform.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

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