While I had some massive booked gains in this name since my strategy is to buy (and sell) in layers and I had sold a lot of my very large position in the upper $40s and lower $50s; my unrealized losses against my booked gains actually had me at a net loss on this name going into today. Which is quite amazing since Blue Coat Systems 30 days ago was the largest winner in the fund. With that said, I am glad to see this company continue to execute and hopefully this will put the fears aside. I am sure at some point naysayers will say 'the credit contagion will somehow hit Blue Coat, but much like Riverbed these 2 companies continue to execute - in Riverbed's situations it was simply a case of a stock too highly valued and full of momentum lemmings; nothing to do with bad earnings or guidance. So here is a case of being 100% correct on the company, but the stock market missing the entire point - and you lose money in the process. Those are, frankly, the most frustrating times... there are many times you will be wrong on a stock, and you take your ball and go home on that name, but when you are right but still "lose" it is tougher to rationalize.
- Internet monitoring equipment maker Blue Coat Systems Inc (BCSI) posted a quarterly profit that topped the Wall Street view, helped by a surge in revenue, and forecast third-quarter results above analysts' expectations, sending its shares up 18 percent in pre-market trade.
- The Sunnyvale, California-based company posted second-quarter earnings of $7 million, or 17 cents a share, compared with a loss of $3.3 million, 12 cents a share, a year ago. Excluding items, the company earned 30 cents a share for the latest quarter.
- Net revenue for the quarter rose 85 percent to $73.4 million.
- Analysts had expected the company to earn 24 cents a share for the quarter, excluding items, on revenue of $69 million, according to Reuters Estimates.
- The company said it expects third-quarter earnings of 31 cents to 35 cents a share, excluding items, on revenue of between $78 million to $81 million. Analysts were expecting earnings of 26 cents a share, excluding items, on revenue of $74.2 million.
Long both names in fund; just sold Blue Coat Systems in personal account
