EXTR

Extreme Networks Inc

TMT, Event Driven/Special Sit


Presented:04/19/2017
Price:$7.41
Cap:$0.80B
Current Price:$14.96
Cap:$1.98B

Presented

Date04/19/2017
Price$7.41
Market Cap$0.80B
Ent Value$0.53B
P/E RatioN/A
Book Value$0.79
Div Yield0%
Shares O/S107.43M
Ave Daily Vol1,490,519
Short Int1.21%

Current

Price$14.96
Market Cap$1.98B
Extreme Networks, Inc. engages in the development and sale of network infrastructure equipment. It offers related services contracts for extended warranty and maintenance to its enterprise, data center, and metropolitan telecommunications service provider customers. The company's product categories include modular ethernet switching systems, stackable ethernet switching systems, wireless ethernet controllers and access points and centralized management software. The company was founded by Gordon L. Stitt and Herb Schneider in May 1996 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Brocade Communication Systems Inc (BRCD), Extreme Networks Inc (EXTR), Hewlett Packard Enterprise Co (HPE), Zebra Technologies Corp (ZBRA),

Highlights

The presenter is long shares of networking solutions provider Extreme Networks (EXTR), which has seen its stock more than double since April 2016. At $7.25, he still sees meaningful upside for shareholders following a sequence of fortuitous acquisitions, including Brocade Communications Systems' data center, switching, routing, and analytics business (3/2017), Avaya’s networking business (3/2017), and Zebra Technologies’ WLAN business (10/2016). The Street has yet to properly model out EXTR’s earnings potential, and while the top line may not grow, the presenter said he has a difficult time modeling an annual EPS figure under $1 per share (pro forma). In addition, he likes EXTR’s management team, which is led by a “very good” CEO (Ed Meyercord).

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Idea Discussion

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