Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of network equipment supplier Brocade Communications Systems (Nasdaq: BRCD ) fell as much as 10% in trading today.
So what: Bloomberg wrote an article concluding that after Dell's (Nasdaq: DELL ) recent purchase of Force10 Networks, it had lost interest in acquiring Brocade. An RBC Capital analyst recently came to the same conclusion, asserting that the purchase will also hurt Brocade's business.
Now what: Now, the biggest concern for investors going forward involves the fate of Brocade's business. Dell resold some of Brocade's products, and analysts are concerned that the company's competing in an increasingly commoditized sector. Shares only trade at 11 times forward earnings estimates, so there might be some value here. For now, I will stay away from shares because of Brocade's uncertain future.
Interested in more info on Brocade Communications Systems? Add it to your watchlist.