[conix]

BRCD short interest now over 24 Million

As of 9/15/2010 -- 24,817,772 shares

[conix]

Brocade: UBS Skeptical That The Company Will Be Acquired

By Eric Savitz

Brocade (BRCD) shares this morning are giving back some of yesterday’s takeover rumor driven 11% gain. One reason for the reversal: UBS analyst Nikos Theodosopoulos this morning writes that he finds a “low probability” of the company being acquired.

The UBS analyst said Brocade could be a takeout candidate given its modest valuation - it has a $3.5 billion enterprise value - but he thinks its low-growth profile and troubled integration of its Foundry Networks acquisition make it “a low probability deal.” He says that IBM, Hewlett-Packard, Juniper and Dell all would “unlikely” to bid for Brocade. Oracle (ORCL), he says, is a “wild card.”

* HP, he says, considered buying BRCD before buying 3Com, but given that deal and subsequent acquisitions of 3Par and ArcSight, HP now seems like an unlikely buyer.
* JNPR, he says, is an unlikely bidder given “incompatibility” on a growth and margin basis.
* Dell, he says, is more likely to partner than acquire.
* Oracle, he says, is a wild card, noting its history of “seeking broken firms with good technology.”

Theodosopoulos keeps his Neutral rating and $5.50 target on the stock.

BRCD this morning is off 17 cents, or 2.7%, to $6.09.

[conix]

BRCD chart

[conix]

Brocade targeted by M&A rumor mill

Shares jump on IBM speculation, though some see Dell making move

By Benjamin Pimentel, MarketWatch

SAN FRANCISCO (MarketWatch) — The tech M&A fever spewed more heat Wednesday as shares of Brocade Communications rose sharply on speculation of a potential buyout deal with IBM Corp.

Brocade /quotes/comstock/15*!brcd/quotes/nls/brcd (BRCD 6.46, +0.20, +3.20%) shares were up 61 cents, or 10.8%, to close at $6.26 on rumors, including a couple reported in Barron’s, that Big Blue(IBM 132.67, +0.10, +0.08%) was considering acquiring the networking gear maker that has long been considered to be a potential target.

[conix]

Then--$7 for BRCD, it is!!

[conix]

Then--$7 for BRCD, it is!!

[stanlee1979]

7 dollars

[conix]

Where would you value BRCD, stanlee?

[conix]

BRCD CEO headed to prison


Ex-Brocade CEO sent to prison for stock backdating
Former Brocade CEO sentenced to 18 months, fined $15M for illegal stock backdating


SAN FRANCISCO (AP) -- A federal judge on Thursday sentenced Brocade Communications Inc.'s former CEO to 1 1/2 years in prison for failing to disclose -- and then covering up -- a plan to alter the date of stock option grants so employees could reap greater compensation.

U.S. District Judge Charles Breyer also fined Gregory Reyes $15 million. Reyes is to report to prison Sept. 10. Reyes' lawyers said he is considering an appeal.

A jury in March convicted Reyes of nine counts of fraud and making false statements. The jury acquitted him of a conspiracy charge.

The jurors agreed with prosecutors who said Reyes backdated stock option grants so they had a lower price, enabling key employees to pocket more money when they bought and sold the stock.

Backdating is legal but must be publicly disclosed because it affects the company's bottom line. Reyes failed to publicly disclose the backdating to the Securities and Exchange Commission and then lied to investigators about his actions.

Reyes was originally convicted of similar charges in 2008, but the 9th U.S. Circuit Court of Appeals uncovered prosecutorial misconduct and ordered a new trial. Brocade's former human resources manager Stephanie Jensen was convicted on similar charges at a separate trial in 2008.

More than 400 family members, friends and other supporters wrote the judge letters urging leniency, citing Reyes community involvement and charitable donations.

The judge called the support detailing Reyes' volunteer work and community involvement "remarkable," but "my primary duty is to protect the public and send a message."

Breyer said Reyes lied to everyone who questioned him about the stock options, including in court.

"It is important to realize that the integrity of the financial market is of great concern to millions of people," Breyer said. "That integrity rests on the shoulders of chief executive officers and chief financial officers being honest in their disclosures."

Before the judge imposed the sentence, Reyes stood up to read a prepared statement, but he began crying so hard that his lawyer had to do it. The statement apologized to Reyes' family and friends for the emotional toll his case has taken on them, but it never directly addressed the backdating issue.

"I am a shell of the man I once was," the statement said.

Brocade, which makes switches that connect companies' servers to their data storage systems, paid $160 million to settle a class-action lawsuit filed by investors. They were angered that the company's backdating scheme and its failure to report it wiped out hundreds of millions of dollars in profits the company had reported for 1999 through 2004.

The San Jose-based company also paid $7 million in 2007 to settle fraud charges alleged in a lawsuit filed by the SEC.

[mkmny]

article on brocade and how it will benefit Brocade.

To be clear, Cisco didn't exactly eviscerate its future when the company got into selling its own server systems in direct competition with IBM (NYSE: IBM) and Hewlett-Packard (NYSE: HPQ). CEO John Chambers characterized the just-reported third quarter as "probably the strongest quarter in our history," thanks to record revenues and a strategy that is "hitting on all cylinders." Sales jumped 27% year over year to $10.4 billion while GAAP earnings soared 61% to $0.37 per share. Keep in mind that the third quarter included an extra week this year, adding about 8% to every figure due to calendar shifts rather than business improvements.

But things could have been so different. I'm not convinced that Cisco is doing all that much better than direct competitors Juniper Networks (NYSE: JNPR) and Brocade Communications Systems (Nasdaq: BRCD), both of whom are keeping up with -- or exceeding -- Cisco's organic growth. Simply put, these are salad days for networking businesses and Cisco should have been springboarding off that trend to increase its already-hulking stature in the sector. But instead, and despite a torrent of bolt-on acquisitions, Cisco is barely keeping up with the Joneses.

And I blame that fateful decision to step on the callused toes of some of Cisco's strongest partners. IBM and HP have been instrumental to Cisco's sales and distribution efforts, but now that the companies are head-to-head competitors, you can't really expect the other big boys to put their back into that effort anymore. They are doing the opposite, in fact. In a parallel universe where Homer never sat on a fish and Cisco stayed out of the server market, Cisco's sales would have Chambers reaching for his thesaurus to describe it.


Csco former partenrs have moved on to Brocade and Juniper, this will greatly increase brocade's sales.

[stanlee1979]

Overpriced here

[mkmny]

brcd should see a boost in sales,

Brocade Announces Financing Options for Customers through Brocade Capital Solutions
8:00a ET April 21, 2010 (Business Wire)

Brocade(R) (Nasdaq:BRCD) today introduced Brocade Capital Solutions, a private-label captive financing program, through which Brocade and a network of qualified business partners and financial services firms will offer customers tailor-made financial options that encompass and complement all of Brocade's technical and support portfolio.

The program is designed to enhance and expand Brocade's relationships with its customers and help Brocade better respond to competitive and business pressures in today's market. Customers can now turn to Brocade Capital Solutions to invest in Brocade technologies and services they need now and spread the payments over the period of the lease by bundling hardware, software, maintenance and training costs into one, low monthly payment.

Brocade today unveiled two specific financing programs to provide customers low-cost options in procuring solutions:

-- A three-year, "same as cash" (0% financing) plan;

-- A plan offering no payment for 90 days and 2.9% financing for a three-year lease thereafter.

Both financing plans apply to select hardware and software in the Brocade networking portfolio.

Programs such as Brocade Capital Solutions are becoming more business-critical with customers according to a survey by IDC*, which predicts that the worldwide market for IT leasing and financing will grow from nearly $90 billion in 2008 to more than $125 billion by 2011. Some of the most frequently mentioned benefits for IT leasing cited by customers include:

-- Protection against equipment obsolescence;

-- Freeing up capital for other uses;

-- Providing the opportunity to better balance project costs with benefits.

"The goal is to provide our customers more options in the way they are able to acquire Brocade solutions and manage the lifecycle costs of those assets," said Jean Furter, vice president and Treasurer at Brocade. "Through Brocade Capital Solutions, we address our own long-term business strategy of growing our business while meeting an increasingly important customer demand."

Availability

Brocade Capital Solutions is now available through Brocade to customers in the United States. Brocade plans to make the program available worldwide and through its authorized channel partners in the future. For more information, please visit: http://www.brocade.com/services-support/financing/index.page

* Source: IDC, Economic Crisis Response: Worldwide IT Leasing and Financing 2008-2012 Forecast Update: Volume for the Top 25 Countries, Doc #215516, December 2008

About Brocade

Brocade (Nasdaq:BRCD) develops extraordinary networking solutions that enable today's complex, data-intensive businesses to optimize information connectivity and maximize the business value of their data. For more information, visit www.brocade.com.

Brocade, the B-wing symbol, BigIron, DCX, Fabric OS, FastIron, IronView, NetIron, SAN Health, ServerIron, and TurboIron are registered trademarks, and Brocade Assurance, DCFM, Extraordinary Networks, and Brocade NET Health are trademarks of Brocade Communications Systems, Inc., in the United States and/or in other countries. Other brands, products, or service names mentioned are or may be trademarks or service marks of their respective owners.

[mkmny]

Nice,
I let go of some call contracts incase price stays at this level, might as well grab a good profit. still holding most of my shares though.

[Med.rare]

My limit order was filled on the morning open at 6.46. I am out with 20% gain. GLTA

[mkmny]

Well news are starting to get more interesting,

Brocade

Possible Dell target

San Jose-based Brocade Communications, a maker of switches for data-storage networks, may be a takeover target for Dell, helping the computer maker compete with Hewlett-Packard, Wedbush Morgan Securities said. "Purchasing Brocade would enable Dell to expand its margins and in addition bring valuable storage and networking products and intellectual property," Wedbush analyst Kaushik Roy said Thursday in a note. He recommends buying Brocade shares. Dell, trying to expand beyond low-priced computers, has said it is looking to make more acquisitions to boost sales to companies. David Frink, a Dell spokesman, said the company doesn't comment on speculation. Brocade spokesman John Noh also declined to comment. "

[mkmny]

6.35 hod
we have some small resistances before we close the gap
I see
6.37 and 6.44
Looking good though, slowly more and more money is coming in

[Med.rare]

BRCD at HOD 6.34

[Med.rare]

keeps pushing up.....got to love it....

[mkmny]

yeah, I'm up over 10 percent in a couple of days. Holding options that are set to expire soon and doing alot better on those.
I'm hoping to brcd can stay above 6 for another week , shouldn't be a problem .

gotta love undervalued plays.

[Med.rare]

i guess we are the only 2 who care.....my $5.23's bought on 02.23 are looking good...glty

[mkmny]

hod of 6.30 and daily chart is looking swell. lol

[Med.rare]

Brocade's Not Broken
By ALEXANDER EULE | MORE ARTICLES BY AUTHOR(S)

The networking-equipment company is still a major beneficiary of tech spending. And its beat-up shares should rebound.

BROCADE WAS BACK IN the news recently for reasons that company executives are still trying to forget.

The company was among those tech outfits ensnared in the options backdating scandal. On March 26, its former chief executive, Gregory Reyes, was found guilty of nine charges stemming from actions as far back as a decade.

The conviction is a negative mark in what's already been a difficult 2010 for Brocade. The company's stock plummeted 23% in one day in February, following a disappointing earnings report, and shares have yet to recover.

More at Barrons

[Med.rare]

breaking out....this should close the gap up to $7.00 from the preciptous fall back on Feb 23 real fast IMO.

[Med.rare]

$6.17 and touched 6.20 and thru the 50 DMA

[mkmny]

But yes rumors are golden, read this following excerpt from 4/05/2010

“IBM will continue to buy companies of all sizes to complement its internal growth,” said Alec Ellison, global head of technology investment banking at Jefferies Group Inc. Ellison has sold small companies to IBM.

Rogoff at Polar Capital says it’s more likely IBM will examine small and midsize targets such as BMC Software Inc., Brocade Communications Systems Inc., NetApp and Juniper. A single deal could add $2 billion to $3 billion in annual sales and plug holes in IBM’s product line.

“There are a lot of assets available out there,” Rogoff said. “IBM and others are feeling the pressure of a new cycle and need to find the right pieces to the puzzle.”

Brocade doesn’t comment on rumor or speculation, John Noh, a spokesman for the San Jose, California-based company, said in an e-mail. Hopkinton, Massachusetts-based EMC also doesn’t speculate on rumors, said spokeswoman Lesley Ogrodnick.

[mkmny]

HOD 6.15

What will help Brocade most is the fact that EMC is focusing on providing a complete storage solution.
Companies that do this and used EMC products and switches will no longer sell them because EMC is now their competitions, They will push Brocade.
Sales numbers should be much better for the rest of the year.
I know something like this happened in my line of work, Immediately we cut sales commissions if personnel sold our competitors products and offered an incentive for selling other brands.

[Med.rare]

HOD $6.14 could break over 50 DMA

[Med.rare]

breaking out.....got back over 6.00....50 dma at 6.14...over that and 7.00 could be easy sailing epecially given buyout rumors

[mkmny]

I think EMC is out of the question but netapps and brcd are good takeover targets. All I know is the daily is lining up. Its about time.

[Med.rare]

excerpt from the Times:
So what could I.B.M. buy? If it were to look at bigger deals than it normally does, investment bankers who’ve pitched deals to the company told Bloomberg News, possibilities include EMC, NetApp, Juniper Networks and Research in Motion. (I.B.M. was in the race for Sun Microsystems, but eventually dropped out.)

Mr. Rogoff told the news service that he thinks the universe of targets includes BMC Software, Brocade Communications Systems, NetApp and Juniper.

[Med.rare]

sure would like to see $6.00 and to hold above it. BRCD is looking stronger....

[mkmny]

What do HP, IBM, HDS and other giants have in common?

They all used to sell EMC products. Emc is switching its business to a total network solution and therefore is now direct competition.

Because of this move these companies are pushing Brocade products alot more, giving sales people incentives to sell brocade instead of EMC.

This also makes brocade a hot commodity and a possible takeover target. IMO a takeover would raise price per share in the short term but would hinder their business in the long term.

Any way my point is that the sales numbers and earnings should be better than expected and continue to grow as they are helped by the huge sales force from these companies to gain market share over EMC.

[netjoy]

This one is looking like a buyout candidate. It may dip into the 4s next week if selling pressure continues.

[Med.rare]

Analysts' Top Picks: Well-Run Companies at Bargain-Basement Prices in the Technology Sector

JOHANNESBURG, SOUTH AFRICA -- (Marketwire)
03/08/10
www.rothmanresearch.com

Based on the study of Rothman

Research analyst Mathew Collier -- "People are all trying to build

their fortune by finding well-run companies at bargain-basement prices. The

hard disk drive (HDD) business went through some tremendous developments in

the last 25 years." Both Brocade Communications Systems Inc. (NASDAQ: BRCD)

and STEC Inc. (NASDAQ: STEC) are great examples of stocks with bargain

prices, but well-run by its companies.

[Med.rare]

closed at hod

[Med.rare]

nice day today....would love to see this get to 6.00 by early next week

[Med.rare]

nice move off 5.35....keep it going next week

[DiligentInvestor092738]

Having a great day. This month we will see 7+. Huge buy just went through (6,889 @ 5.82 = $40,000).

All the best

[makeamint]

Very nice coming off the RSI 14 dip below 30 and really,really
wants to fill that Gap back to $7 ;)

[Exaybachay]

I been watching it brother,
it looks like a nice slow and steady rebound
I should of avg'd down at 5.50
oh well,
slow and steady will be ok

[loridans]

BRCD

[Fedex11 ©]

same to you

[makeamint]

Looking forward to averaging UP here with you :)

Way oversold and Good luck to you sir.