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.
So What: As far as stock splits go, you know the Foolish position -- this is a non-event. But Riverbed's profits are real, and even bigger than they appear. Actual free cash flow produced year to date hit $105.4 million, or nearly five times reported net income.
Now What: If Riverbed keeps earning at its current rate, the company's price-to-free cash flow ratio of 28 looks reasonable, given analyst projections for 25%-plus long-term growth. This makes the stock a fair value today, but the better play might be to take a position in F5 Networks
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