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Welcome to Profit Confidential • Tuesday, May 22, 2012

There’s Still Profit to Be Had

Wednesday, September 5th, 2007
By Mitchell Clark, B.Comm. for Profit Confidential

Any stock that can tick higher in this market truly has great potential going forward. Like many are saying about the real estate market, the stock market isn’t particularly overvalued, there’s just the issue of confidence in the marketplace.

Even in bad stock market conditions, it’s a great time to be looking for new investment opportunities. Get a list of all the stocks with the highest relative strength in this market and I’ll bet you many of them do well over the next two quarters.

One company that looks particularly interesting in this market is Riverbed Technology, Inc. (NASDAQ/RVBD). This mid-cap company is based in San Francisco. It sells what is known as “Steelhead” appliances, which are proprietary software applications embedded in computer hardware. The company sells to all kinds of customers that have large headquarters and datacenters to manage.

According to the company, its revenues for the second quarter of 2007 were fifty-four million dollars, representing impressive growth of 199% over revenues generated in the comparable second quarter.

GAAP net income for the period was $3.9 million, or $0.05 per diluted share, as compared to a net loss of $6.1 million, or ($0.46) per share, in the second quarter of 2006.

The company finished the second quarter with two-hundred and seventeen million dollars in cash and marketable securities and virtually debt-free.

In a market where investor confidence is weak, growth is the only way to get investors excited about a stock. So, as an investor, you have to go where the growth is. This is why Chinese stocks have been of particular interest lately.

Riverbed Technology is a relative new listing on the stock market. However, in my mind, its solid price performance and its current strength in the face of weak market conditions make it an attractive company to consider.

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Profit Confidential AuthorMitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.

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