Brocade Communications Systems Inc. delivers industry-platforms, solutions, and services for intelligently connecting, managing, and optimizing IT resources in shared storage environments. Brocade Communications Systems Inc. has a market cap of $2.05 billion; its shares were traded at around $4.77 with a P/E ratio of 12.1 and P/S ratio of 1. Brocade Communications Systems Inc. had an annual average earnings growth of 15.3% over the past 10 years. GuruFocus rated Brocade Communications Systems Inc. the business predictability rank of 2-star.
David Dreman bought 4,141,969 shares in the quarter that ended on 03/31/2012, which is 0.5% of the $4.79 billion portfolio of Dreman Value Management. Ray Dalio owns 543,135 shares as of 03/31/2012, an increase of 1579.71% from the previous quarter. This position accounts for 0.049% of the $6.43 billion portfolio of Bridgewater Associates. Joel Greenblatt owns 243,087 shares as of 03/31/2012, an increase of 123.38% from the previous quarter. This position accounts for 0.12% of the $1.15 billion portfolio of Gotham Capital.
CEO of Brocade Communications Michael Klayko recently purchased 50,000 shares of BRCD stock, at an average price per share of $4.39. Since his purchase, the stock price has increased by 8.66%. Previously, Kayko has not made any recent trades in the company.
Other insiders are decreasing their positions in Brocade Communications, including the company’s CFO, who sold off over 60,000 shares from the fourth quarter 2011 to the first quarter 2012. Additionally, other directors and insiders have also reduced their positions in the company.
Michael Klayko is the CEO and a director of Brocade since January 2005. Prior to his position as CEO, he served as the vice president of Worldwide Sales from May 2004 to January 2005. Previously, he held a position in Rhapsody Networks, a privately held technology company that was later acquired by Brocade.
Brocade has had an average revenue growth of 9.5% for the last 10 years, and 10.7% for the last 5 years. GuruFocus’ DCF calculator values Brocade at a fair value of $5.46, with a positive margin of safety of 13%. However, the company has a business predictability of 2 stars, and companies with low business predictability may not display accurate results on the DCF calculator. Brocade has had positive earnings for 7 of the last 10 years, with earnings growth remaining mostly flat throughout the past 10 years.
Brocade recently bought back $114 million worth of shares, and holds $415 million in cash. However, as of October 2011, the company had $744 million in long-term debt and $155 million in other long-term liabilities.
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