New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Guru News and Commentaries
Guru News, Stock picks and commentaries
New Topic
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicLog In
George Soros Buys Extreme Networks Inc. (EXTR), But Why?
Posted by: guruek (IP Logged)
Date: June 28, 2009 06:53PM

(GuruFocus, June 28, 2009) Investment Guru George Soros have increased his holding in networking gears company Extreme Networks Inc. (EXTR). GuruFocus Data shows that Soros has increased his shares by 563% to 5.079 shares on June 16, 2008. The trading price was $1.89 per share.

Extreme Networks Inc. is a provider of switching solutions for enterprise local area networks, internet service providers, and content providers. Extreme Networks Inc. has a market cap of $180.26 million; its shares were traded at around $2.03 with a P/E ratio of 33.83 and P/S ratio of 0.5.

Soros has been trading in and out of this stock for the past three years. First we say him buying 666,700 shares in 4Q06 and he increased his shares to 3.5 million shares in 2Q08. Then he sold all but 170,799 shares by 3Q08 and increased to 766,666 shares in 1Q09. This time around, Soros built a greater position than anytime in history. On April 23, 2009, Extreme Networks, Inc. announced financial results for its third quarter ended March 29, 2009. For the quarter, net revenue was $77.2 million, compared to $82.0 million in the year-ago quarter. Net loss on a GAAP basis was $2.2 million or a loss of $0.02 per diluted share. That compares to the year-ago net loss of $0.2 million or a loss of $0.00 per diluted share.

Why does Soros buy more than 5% of a high-tech company that does not have earnings and shrinking revenue? It is not obvious to us. Anyne has a better idea?

GuruFocus provides Real Time Guru Picks and Insider Buys/Sells information for Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.



Guru Discussed: George Soros: Current Portfolio, Stock Picks
Stocks Discussed: EXTR,
Rate this post:

Rating: 2.3/5 (18 votes)



Re: George Soros Buys Extreme Networks Inc. (EXTR), But Why?
Posted by: Callaquin (IP Logged)
Date: June 29, 2009 03:05PM

Thats valuation wise. Then again, approaching this as a value investor is probably why this investment escapes most value investor's way of thinking. The company is releasing new products. Soros is speculating investor's expectations. The company might turn around with their new products. If they don't, he simply gets out.

“The worse a situation becomes the less it takes to turn it around, the bigger the upside.”
-George Soros



Guru Discussed: George Soros: Current Portfolio, Stock Picks
Stocks Discussed: EXTR,
Rate this post:

Rating: 2.1/5 (14 votes)





Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK