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 cloud software play BroadSoft (Nasdaq: BSFT) are surging 11% today following positive analyst comments regarding the stock.

So what: Pacific Crest analysts see Comcast's PBX cloud phone service as an opportunity for BroadSoft's software. The stock is responding to the news by hitting levels not seen since last May.

Now what: All analyst comments should be taken with a grain of salt. They are short-term price movers but do little to change the long-term outlook of a stock.

As for the cloud sector, I continue to feel that most companies are trading far ahead of a realistic valuation. Although I'd hesitate to call BroadSoft the worst offender of the bunch, but at nearly eight times book and 37 times trailing-12-month sales there have to be better values out there. Needless to say, I'm passing at these levels.

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