F5 spurs a sell-off worth buying
Internet stocks are down 5% to 10% after F5 Networks' disappointing earnings. It's a chance to pick up the names you thought had gotten away from you.
Shoot first. Shoot everything! That's the market's reaction to Internet backbone F5 Networks' (FFIV) earnings last night, and I have to tell you that I believe it is a vicious overreaction. But don't tell the sellers.
I am seeing anything connected to the Net down 5% to 10%. Anything. Juniper (JNPR). Salesforce.com (CRM). Riverbed (RVBD). Acme Packet (APKT). Motricity (MOTR). Akamai (AKAM) is the only one that seems not to be down too far . . . yet. The whole mobile Internet tsunami has been wiped out because of F5's guidance!
What's the truth here?
First, if you can get F5 down even 30 -- who would ever have thought that would merit an "even"? -- then you should just grab it.
That's ridiculous. The company is a good company. While you can't be overly eager, because we don't know enough yet about what "went wrong" at F5, it doesn't deserve to be drawn and quartered (or thirded)!
Second, this is the chance to get into something like Ciena (CIEN) or Juniper (an Action Alerts PLUS name), which haven't come in at all. I am even thinking of looking at the Motorola (MSI) spin-offs.
None of this is new. It is how we have always seen the highfliers get played. I am sure Chipotle (CMG) will come down on this. Deckers (DECK) even! This is another one of those moments that have been occurring in the tech market since the days of Digital Equipment and Data General to U.S. Robotics, Lucent (LU) and Nortel (NT).
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You like something in the tech space but thought it got away from you? Today it will not be away from you. It will be in your cross hairs. Yet I think that, like those described in "Men Against Fire" -- late, great L.A. Marshall's classic study of soldiers in battle -- most will not be able to pull the trigger.
At the time of publication, Cramer was long JNPR.
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