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| Thank you for requesting an analysis of Brocade Comm
from VectorVest. The ticker symbol for Brocade Comm is BRCD. BRCD is traded
on the NASDAQ - (xO) and options are available for this stock |
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| Analysis Summary |
| BRCD is undervalued compared to its Price of
$5.23 per share, has about average safety,
and is currently rated a Buy. |
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| In-Depth Analysis |
| BROCADE
COMMUNICATIONS SYS, (BRCD) provides Fibre Channel switching solutions for
storage area networks, which apply the benefits of a networked approach to
the connection of computer storage systems and servers. |
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| BRCD closed
on 9/17/2004 at $5.23 per share |
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| Value is a
measure of a stock's current worth. BRCD has a
current Value of $9.45 per share. Therefore, it is undervalued compared to
its Price of $5.23 per share. Value is computed from forecasted
earnings per share, forecasted earnings growth, profitability, interest, and
inflation rates. Value increases when earnings, earnings growth rate and
profitably increase, and when interest and inflation rates decrease.
VectorVest advocates the purchase of undervalued stocks. At some point in
time, a stock's Price and Value always will converge. |
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| RV
is an indicator of long-term price appreciation potential.
BRCD has an RV of 1.56, which is excellent on a
scale of 0.00 to 2.00. This indicator is far superior to a simple
comparison of Price and Value because it is computed from an analysis of
projected price appreciation three years out, AAA Corporate Bond Rates, and
risk. RV solves the riddle of whether it is preferable to buy High growth,
High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the
purchase of stocks with RV ratings above 1.00. |
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| RS
is an indicator of risk. BRCD has an RS rating of
0.91, which is fair on a scale of 0.00 to 2.00. RS is computed from
an analysis of the consistency and predictability of a company's financial
performance, debt to equity ratio, sales volume, business longevity, price
volatility and other factors. A stock with an RS rating greater than 1.00 is
safer and more predictable than the average stock in the VectorVest
database. VectorVest favors the purchase of stocks of companies with
consistent, predictable financial performance. |
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| RT
is a fast, smart, accurate indicator of a stock's price trend.
BRCD has a Relative Timing rating of 1.12, which is
good on a scale of 0.00 to 2.00. RT is computed from an analysis of
the direction, magnitude, and dynamics of a stock's price movements over one
day, one week, one quarter and one year time periods. Once a stock's price
has established a strong trend, it is expected to continue in that trend for
the short-term. If a trend dissipates, RT will gravitate toward 1.00. RT
will explode from bottoms, dive from tops, and reflect changes in price
momentum. VectorVest favors the purchase of stocks with RT ratings above
1.00. |
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VST is the master indicator for ranking every stock in the VectorVest
database. BRCD has a VST rating of 1.20, which is
good on a scale of 0.00 to 2.00. VST is computed from the square root
of a weighted sum of the squares of RV, RS, and RT. Stocks with the highest
VST ratings have the best combinations of Value, Safety and Timing. These
are the stocks to own for above average, long-term capital appreciation.
VectorVest advocates the purchase of safe, undervalued stocks rising in
price. |
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| : CI is an
indicator which reflects a stock's ability to resist severe and/or lengthy
price declines. BRCD has a CI rating of 0.17, which
is very poor on a scale of 0.00 to 2.00. CI is quite different from
RS in that it is based solely upon a stock's long-term price history.
VectorVest advocates the purchase of high CI stocks. |
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| GRT
reflects a company's one to three year forecasted earnings growth rate in
percent per year. BRCD has a forcasted Earnings
Growth Rate of 33.00%, which VectorVest considers to be excellent.
GRT is computed from historical, current and forecasted earnings data. It is
updated each week for every stock in the VectorVest database. GRT often
foretells a stock's future price trend. If a stock's GRT trend is upward,
the stock's price will likely rise. If GRT is trending downward, the stock's
Price will probably fall. VectorVest favors the purchase of stocks whose GRT
is rising and is greater than the sum of current inflation and interest
rates, (8.22%). |
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| : VectorVest
gives a Buy, Sell, Hold recommendation on every stock, every day. BRCD has a
Buy recommendation. REC reflects the cumulative effect of all the VectorVest
parameters working together. These parameters are designed to help investors
buy safe, undervalued stocks rising in price. They also help investors avoid
or sell risky, overvalued stocks falling in price. VectorVest recommends
that investors buy high VST-Vector, Buy-rated stocks in rising markets. |
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| : Stop is an
indicator of when to sell a long position or cover a short position.
. This
is $0.38 below BRCD's current closing Price. A stock's Stop is computed from
a 13 week moving average of its closing prices, and is fine-tuned according
to the stock's fundamentals. High RV, high RS stocks have lower Stops, and
low RV, low RS stocks have higher Stops. In the VectorVest system, a stock
gets a 'B' or 'H' recommendation if its Price is above its Stop and an 'S'
recommendation if its Price is below its Stop. |
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EPS stands for leading 12 months Earnings Per Share.
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VectorVest determines this forecast from a combination of recent earnings
performance and traditional fiscal and/or calendar year earnings forecasts.
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| P/E is a popular measure of stock valuation which shows the
dollars required to buy one dollar of earnings. . This ratio may be deemed to be high or low
depending upon your frame of reference. The average P/E of all the stocks in
the VectorVest database is 27.22. P/E is computed daily using the formula:
P/E = Price/EPS. |
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| : EY reflects
earnings per share as a percent of Price. EY is related to P/E via the
formula, EY = 100 / (P/E), and may be used in place of P/E as a measure of
valuation. EY has the advantages that it is always determinate and can
reflect negative earnings. . This is above the current average of 3.67% for all
the stocks in the VectorVest database. EY equals 100 x (EPS/Price). |
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| GPE is another popular measure of stock valuation. It
compares earnings growth rate to P/E ratio. . High growth stocks are believed to be able
to justify high P/E ratios. A stock is commonly considered to be undervalued
when GPE is greater than 1.00 and overvalued when GPE is below 1.00.
Unfortunately, this rule of thumb does not take into account the effect of
interest rates on P/E ratios. The operative GPE ratio of 1.00 is valid when
and only when interest rates equal 10%. With long-term interest rates
currently at 5.52%, the operative GPE ratio is 0.30.
Therefore, BRCD may be considered to be undervalued.
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VectorVest reports annual, regular, cash dividends as indicated by the most
recent payments. Special distributions, one-time payments, stock dividends,
etc., are not generally included in DIV. . |
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DY reflects earnings per share as a percent of Price.
. DY equals 100 x (DIV/Price). It is
useful to compare DY with EY. If DY is not significantly lower than EY, the
dividend payment may be in jeopardy. |
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DS is an indicator of the assurance that regular cash dividends will be
declared and paid at current or at higher rates for the foreseeable future.
. Stocks with DS values above 75 typically have RS values well above 1.00
and EY levels that are much higher than DY. |
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| Dividend Growth is a subtle yet important indicator of a
company's financial performance. It also provides some insight into the
board's outlook on the company's ability to increase earnings.
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| YSG
is an indicator which combines DIV, DY and DG into a single value, and
allows direct comparison of all dividend-paying stocks in the database.
. Stocks with the highest YSG values have the best
combinations of Dividend Yield, Safety and Growth. These are the stocks to
buy for above average current income and long-term growth. |
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| : BRCD opened
trading at a price of $5.16 per share on 9/17/2004. |
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| : BRCD traded at a
High price of $5.26 per share on 9/17/2004. |
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| : BRCD traded at a Low price of
$5.06 per share on 9/17/2004 |
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| : BRCD closed trading at price
$5.23 per share on 9/17/2004. (Close is also called Price in the VectorVest
system) |
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| : Range reflects the difference
between the High and Low prices for the day. BRCD traded with a range of
$0.20 per share on 9/17/2004. |
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| : BRCD closed up 0.09 from the
prior day's closing Price. |
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| : BRCD's Price changed 1.75% from
the prior day's closing price. |
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| : BRCD traded 3,412,500 shares
on 9/17/2004. |
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| : AvgVol is the 50 day moving
average of daily volume as computed by VectorVest. BRCD has an AvgVol of
5,345,800 shares traded per day. |
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| : %Vol reflects the percent
change in today's trading volume as compared to the AvgVol. %Vol equals 100
x (Volume/AvgVol). BRCD had a %Vol of -36.16% on 9/17/2004 |
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| : Sales Growth is the
Sales Growth Rate in percent over the last 12 months. BRCD
has a Sales Growth of 12.00% per year. This is good. Sales Growth is
updated each week for every stock. It is often useful to compare Sales
Growth to Earnings Growth to gain an insight into a company's operations.
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| . SPS can be used as a measure of valuation when
comparing stocks within an Industry Group. |
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| . This ratio is also used as a measure of valuation. Here,
too, it is useful when comparing stocks within an Industry Group. |
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| . |
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| . Market Capitalization is calculated
by multiplying price times shares outstanding. |
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| : BRCD has been
assigned to the
Industry Group. VectorVest classifies stocks into over 200 Industry Groups
and 40 Business Sectors. |
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| : BRCD has been
assigned to the Business Sector.
VectorVest classifies stocks into over 200 Industry Groups and 40 Business
Sectors. |
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| Graph |
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| Brocade Comm |
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| Computer (Networks) |
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