JNPR —Undervalued Stock—
Wednesday, January 23rd, 2008========= Undervalued Stock #1 ==========
Juniper Networks, Inc. engages in the design, development, and sale of assured Internet Protocol (IP) secure networking solutions primarily in Americas; Europe, Middle East, and Africa; and Asia Pacific. Its solutions are incorporated into the global Web of interconnected public and private networks across various media, including voice, video and data, and travel. The company’s network infrastructure solutions enable service providers and other network-intensive businesses to support and deliver services and applications on an integrated network. Its infrastructure product family consists of M-Series and T-Series, and E-Series products. The company’s service layer technologies (SLT) provide network security solutions; and enable customers to provide additional IP-based services and enhance the performance and security of their existing networks and applications. The SLT product family comprises firewall and VPN systems; firewall and VPN appliances; SSL VPN appliances; IDP appliances; application acceleration platforms; unified access control; and AAA and 802.1X products. In addition, the company offers technical assistance, hardware repair and replacement parts, unspecified software updates, and professional and educational services. Its customers include service providers, such as wireline, wireless, and cable operators, as well as Internet content providers; enterprises; governments; and research and education institutions.
—— Juniper Networks, Inc. (JNPR) —–
If you think that the company won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on JNPR.
After hitting a one-year high of $37.95 in October/2007, JNPR has declined over the past month. JNPR opened this morning at $24.5. So far today the stock has hit a low of $24 and a high of $25. The chart for JNPR looks neutral and improving, while S&P gives the stock a 3 STARS (hold) rating,
JNPR has a current Value of $30.74 per share
Value: Value is a measure of a stock’s current worth. JNPR has a current Value of $30.74 per share. Therefore, it is undervalued compared to its Price of $25.61 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 profitability 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.
RV (Relative Value): RV is an indicator of long-term price appreciation potential. JNPR has an RV of 1.45, 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.
To be Continued….
(Meanwhile, here is a link to see my past articles of some good picks:)
http://www.mystockwinners.com/comments-on-iag/
