Buying Brocade

Good idea by Philip Davis here.

Usually I don't look at biggest drops, most of the time these are companies which are not investable. Today was different. I wouldn't know about Brocade (BRCD) if not for Philip. I completely agree with his estimate: company reported better than expected profits, lower than expected revenues and reduces expected income for 2010 by 5%. Stock dropped more than 23%! Way out of proportion. This is not some wreck, this is a profitable company, with P/E about 12 even at reduced earnings projection.

I snapped some BRCD today. I don't know yet if I'm going to sell options on it like Philip did. Need to do some research.