Two Bets on Blue Coat
05/07/2004 12:00 am EST
Jim Oberweis and Jim Collins are two of the best growth stock pickers around. Both use proprietary systems to isolate fast growing, small-cap stocks and both are among the top performing newsletter advisors. Both also have just recommended a Web security firm–Blue Coat.
"Blue Coat Systems (BCSI NASDAQ) provides Web security solutions that increase the protection and control of enterprise Web infrastructures," notes Jim Oberweis, editor of The Oberweis Report . "Its solutions provide visibility and control of Web communications to address today’s business risks, such as inappropriate Web surfing, viruses brought in via instant messaging and Web-based email, and network resource abuse due to peer-to-peer (P2P) file sharing and video streaming. Revenue in the most recently reported third quarter ended Jan. 31, 2004 increased over 60% to $19.1 million from $11.7 million in the same year-ago quarter. This also represented a 43% sequential gain in revenues. New enterprise customers in the quarter included the Green Bay Packers, Hyatt Hotels, and Timberland Shoe. These shares may be appropriate for risk-oriented investors."
Adds Jim Collins, editor of OTC Insight , "Blue Coat is focused on developing Internet proxy appliances that provide powerful visibility and control of all Web communications such as content filtering, Web virus scanning, instant messaging control, and peer-to-peer sharing. The strong first quarter was the result of significant sequential revenue growth driven by better than expected spending by customers, a major new product release, and increased awareness of the need for proxy appliances. Technically, the stock closed at an all-time high on March 30. The company receives an A+ rating for accumulation and distribution and has a relative strength rating of 99. We consider this an exceptionally attractive stock for aggressive traders."