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Brocade shares on the cusp of a major breakout

Belpointe Asset Management Chief Strategist David Nelson, FBN's Charles Payne, retail analyst Hitha Prabhakar, Penn Financial Group founder Matt McCall and Monster Worldwide Senior V.P. Joanie Courtney on Brocade Communications Systems.

This article is part of the series

Good Time to Buy Brocade Communications?

By Payne's Picks FOXBusiness

Let’s talk about Brocade Communications (BRCD).

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Brocade was one of the tech-telecom bubble survivors. It was a darling at one point, and maybe because people remember that, it’s not getting the love it should. I think there’s some lingering resentment on Wall Street.

This was once a hot name. In October 2000, it was $126 a share. Fast forward to today, and the company last week posted results that beat the Street top and bottom, but the stock couldn't get traction. The company continues to have great success in VDX (virtual document exchange) and SAN (storage area networking). Those are two areas that have evolved.

It also has even fresher opportunities: the cloud, data centers, software and … those Ethernet switches.

I love the way this company has been coming on very, very strong over the last 4 quarters. Looking at big spending in big data, service providers, education and health care, that’s where Brocade is really going to grow. Margins are going to start to expand, and the stock is on the cusp of a major breakout.

The shares need to close above $10.50, from there I think it has potential to $14.
 

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DISCLOSURES

Brocade Communications (BRCD)

Owns

Family Owns

Firm Owns

Investment
Banking

CHARLES N N Y N
MATT N N N N
DAVID N N N N
JOANIE N N N N
HITHA N N N N

 

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