What’s Up With Emluex and Qlogic?
Shares of Emulex (ELX) and Qlogic (QLGC), both of which made host bus adapters, used in enterprise storage systems, are taking it on the chin today for no obvious reason. Sure, there is the usual queasiness about the economy and the potential impact of a recession on enterprise IT spending; the warning last night from Riverbed (RVBD) could be a contributing factor. There is no specific news on either company, and no major analyst moves.
Emulex is down $1.34, or 8%, to $15.43. Qlogic is off 71 cents, or 4.3%, to $15.65.
Any other theories?
No idea. I work at Emulex, I see no reason. Things look fine from my POV.
All enterprise businesses are slowing down, RVBD, CSCO, and ORCL. Do not understand why some people just can not wait to buy stocks.
If there really is no reason for this sharp decline, it is a brilliant buying opportunity. I’m picking up some additional shares today.
down 9% in one day for no reason, 9 out of 10 and all the analysts say buy?? I’m loading up!!!
If all analysts said “buy”, then you’ll be 100% better off to sell or short.
what book did you read that in george? this stock got hammered for no reason. though there are some uneasy times in the short term, this is a solid company with very clean books compared to Qlogic. Load up for the 9month haul.
nothing happen to both company.this is goog chance to buy,
WHAT BOOK DID YOU READ, ANONYMOUS, THAT YOU SEE CLEANER BOOKS FOR EMULEX THAN FOR QLOGC. I AM NOT GOING TO POST ANY THING ELSE BECAUSE IT WILL ONLY CAUSE DAMAGE TO BOTH, WHICH I OWN. THE OTHER READERS TAKE THEIR OWN OPINION READING THE FUNDAMENTALS AND KEY STATISTICS
What happened? If you had a chance to take a look at Level 2 you would noticed that there was a heavy selling on any uptick. Either heavy short selling in effect or some entity took a decision to unload at any price.
I tend to consider it as a manipulative attempt to drive a share price down either for a further accumulation or short covering from a more comfortable (for shorts) level. We has a lot of sells below a bid that in turn a clear sign of rather a price manipulation to downside than a natural supply/demand trading.
Anaylsts typically say sell when it is too late. RVBD was a sell when the analysts said buy. Now that is has sold off over 50% they say sell. Probably time to buy. It’ll be the same with qlogic.
qlgc look possitive rating
Hey Blas, read the earnings releases!! Or are there too many pages for you. Do you get bored? Qlogic has changed the way that they bucket revenue several times in the past couple of years. Why do you think they do that? The answer is to make things more cloudy for investors and the market at large.
Qlogic are changing the way they bucket revenue because they have got into new area (InfiniBand adapters) and gotten out of old area (disk-drive chips). I agree that this is one of the most profit-focused management teams in the whole industry.
Idea…
Try asking your readers!
what management team?! they don’t have a CFO or a COO. how can you say they are focused when they have obvious strategic direction issues within the “executive team”?
Wow, bad timing on the CFO comment, looks like they just announced a new CFO!
“QLogic Corp. (NASDAQ:QLGC), a leader in networking for storage and high performance computing (HPC), today announced the appointment of Simon Biddiscombe to the position of Senior Vice President and Chief Financial Officer. He is expected to join the company in late April.”
Hahaha! Did you notice what happened to MindSpeed’s stock price when it was announced that he resigned? Jumped 8.5%! Good Luck is all I have to say to Simon. Hopefully, he does not suffer the same fate as Jeff.
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
