"Market Madness"

[jimmenknee]

EXTR -- Basically sound but needs to grow US sales and follow through to increase profits. Litigation could start to drag this in 2008 and SEC/NASD compliance issues are short-term lingerers...

"Extreme Networks provides network infrastructure equipment based on the Ethernet standard. Its customer base includes corporations, health-care and educational institutions, the government, and metropolitan service providers. The company also provides consultative services to its customers. International sales account for about 60% of total revenue."

--Gapped up off positive 2Q 2008 earnings (Jan)
--Patent infringement lawsuit filed against them in Feb

Good:
--No outstanding debt :)
--Project increased profits and growth with acceleration the 2nd 1/2 2008

Bad:
--5 active legal, 1 plaintiff (patent infringement) and 4 defendant (IPO related, fraud and 2 patent infringement)
--Had problems keeping filing and regulatory compliance in 2007

Unknown:
--Good news is SEC didn't recommend enforcement action off stock option granting investigation
--Bad news a stockholder initiated action in Apr 2007 related to options granting & accounting practices