With the pullback of
Blue Coat Systems (BCSI) to the low $80s I have been adding to this name a yesterday and today in the $82-$83 range. The stock pulled back after hitting $90 on Monday - by year end I would not be surprised to see $100. (barring market carnage of course!) The stock is trading at 42x 2007 estimates; not cheap at all but the market is paying far higher premiums for companies of far lower quality in other sectors.
In this environment of "see no evil, hear no evil" & "global central banks have your back, please speculate at will" I suppose one is forced to pay up for names one likes.
Blue Coat Systems is now up to 3.7% of the fund's holdings.
Long Blue Coat Systems in fund and in personal account
