BCSI Blue Coat Systems: Yet another security company

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	David Sachdev
	Washington, DC User since Dec 2009	37
Covers MCP SINA GLUU SODA BAC AAPL TIBX and 3 other stocks - Go to Blog
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Yet another security company

This is yet another computer security company that has come under buy0ut speculation. I have purchased shares in three such companies hoping that one will be a true buyout target, but this coverage is based on technical analysis. The timeframe is conservative because I don't know Blue Coat very well myself (take that as a warning). I did however get this stock first here on Prooftrader, so between another coverage, and some comments on other Security companies I found out about this one.

This is speculative, and based mainly on Technical Analysis. Be warned if you follow this rec.

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What People Are Saying...

Mike Barkett said at 12/16/10 4:16 PM Price action was $29.91 2.20 (+7.9%)

beat me to the punch on this one. :) I have been meaning to write a long BCSI coverage for a while.

Ian Hall agreed at 1/4/11 10:07 AM Price action was $30.65 0.15 (+0.5%)

I like this pick. I closed out my coverage of Blue Coat early, right at its 2010 peak. I figured it would recover quickly (despite my comments to the contrary on that same coverage) and have been meaning to get back in. I'd be pretty surprised if they didn't get back up to around the $35 level or even higher as the brand continues to gain momentum in the government sector over the coming year.

Josh Warner-Burke said at 1/13/11 12:34 PM Price action was $31.24 -0.16 (-0.5%)

Image is from the movie Hackers - Save your network from Angelina Jolie!

Josh Warner-Burke said at 2/18/11 10:07 AM Price action was $29.01 -1.51 (-4.9%)

"BCSI fell 6.8 percent to $28.46. The provider of Internet security for corporations forecast fourth-quarter sales of $128 million at most, trailing the average analyst estimate of $129.7 million in a Bloomberg survey."

Buying opportunity?

Mike Barkett said at 2/18/11 12:37 PM Price action was $28.89 -1.63 (-5.3%)

tons of resistance at 28. Let it deflate a bit and pick it up as close to 28 as possible, IMO.

David Sachdev said at 2/18/11 12:40 PM Price action was $28.89 -1.63 (-5.3%)

I also think I would wait and see where we go next week. It is friday before a 3 day holiday with options expiration and turmoil all over the world. There will be selling this afternoon - and for the last few days some of the best traders have been predicting a down week next week.

Josh Warner-Burke said at 10/13/11 4:12 PM Price action was $15.50 0.00 (0.0%)

Wow Bluecoat has really tanked hasn't it? Has it fallen so much that it's due to rebound?

David Sachdev said at 12/9/11 8:49 AM Price action was $17.48 -0.25 (-1.4%)

Wow...look at that jump today!

Josh Warner-Burke said at 12/9/11 9:44 AM Price action was $17.48 0.00 (0.0%)

Wow up 40%. But still underneath the price initiated here.

David Sachdev said at 12/9/11 10:27 AM Price action was $25.16 7.68 (+43.9%)

Yes...I checked...I was still holding onto 7.73 shares, so I'll take what increase I can get! Buyout offer.