Comments on: Aruba Networks Inc. (ARUN) – VC distributions present opportunity http://zachstocks.com/2007/12/aruba-networks-inc-arun-vc-distributions-present-opportunity/ Dynamic Investments for Exceptional Traders Tue, 31 Jan 2012 01:21:02 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Sandra Romero http://zachstocks.com/2007/12/aruba-networks-inc-arun-vc-distributions-present-opportunity/comment-page-1/#comment-15879 Sandra Romero Sun, 22 May 2011 22:50:31 +0000 http://zachstocks.com/2007/12/aruba-networks-inc-arun-vc-distributions-present-opportunity/#comment-15879 Wonderful site - But I think there may be a thing wrong with your feed. Just needed to let you know. Wonderful site – But I think there may be a thing wrong with your feed. Just needed to let you know.

]]> By: Clark Cochran http://zachstocks.com/2007/12/aruba-networks-inc-arun-vc-distributions-present-opportunity/comment-page-1/#comment-4435 Clark Cochran Thu, 27 Mar 2008 14:54:31 +0000 http://zachstocks.com/2007/12/aruba-networks-inc-arun-vc-distributions-present-opportunity/#comment-4435 Here is a letter I recently wrote to Thomas Lee, the analyst at Goldman Sachs, who just downgraded ARUN to a "sell" when it was at $6 aq share... ------------------------------------------ Dear Mr. Lee: Your recent downgrade or ARUN to a “sell” is probably the most irresponsible and poorly supported analyst recommendation that I have witnessed in my investing career. You just now took over responsibility for ARUN and have not even had any time to do any legitimate analysis of the company, its technology, strategy or forecasts, nor have had the time to have thorough discussions with its management. And your rationale that businesses will now shift their procurements to Cisco and away from the number two player in the market because we are in an economic downturn is baseless. That same logic would predict that when I go to a Best Buy to purchase a wireless router, I will now automatically buy a Linksys router over a Netgear router because we are in an economic downturn, and I want to make sure that if I need to call customer service, someone is actually there to pick up the phone and that the company has not gone out of business, and to be sure of that, I will only purchase from the number one market share holder. Ridiculous. You reason that because we are in an economic downturn, the majority of all customers will flock to the predominant, largest vendor, severely crippling all other competitors. How absurd. Your second point that customers will also want to package or bundle their procurements together is equally ludicrous. Do you even have any concept of the price, technology, and support advantages that Aruba offers over Cisco? Why do you think Aruba is even in business and why other competitors to Cisco are in business? Aruba stock was at $22 a share a few months ago. It was around $6 a share when you made your “sell” recommendation, saying you expect it to go down to $4 a share. The only reason it has gone down at all is because of the fact that “Goldman Sachs” has issued a sell recommendation on the stock. When the next quarters results are announced, I am confident the price will go up, as it will every subsequent quarter this year.... I will write you again after next quarter’s results and we will see who has a better grasp on reality, and who is better at your job; you or me. Until then, I suggest you do a little more thorough research on the companies you make recommendations on. Regards, Clark Cochran Here is a letter I recently wrote to Thomas Lee, the analyst at Goldman Sachs, who just downgraded ARUN to a “sell” when it was at $6 aq share…
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Dear Mr. Lee:

Your recent downgrade or ARUN to a “sell” is probably the most irresponsible and poorly supported analyst recommendation that I have witnessed in my investing career. You just now took over responsibility for ARUN and have not even had any time to do any legitimate analysis of the company, its technology, strategy or forecasts, nor have had the time to have thorough discussions with its management. And your rationale that businesses will now shift their procurements to Cisco and away from the number two player in the market because we are in an economic downturn is baseless.

That same logic would predict that when I go to a Best Buy to purchase a wireless router, I will now automatically buy a Linksys router over a Netgear router because we are in an economic downturn, and I want to make sure that if I need to call customer service, someone is actually there to pick up the phone and that the company has not gone out of business, and to be sure of that, I will only purchase from the number one market share holder. Ridiculous.

You reason that because we are in an economic downturn, the majority of all customers will flock to the predominant, largest vendor, severely crippling all other competitors. How absurd. Your second point that customers will also want to package or bundle their procurements together is equally ludicrous. Do you even have any concept of the price, technology, and support advantages that Aruba offers over Cisco? Why do you think Aruba is even in business and why other competitors to Cisco are in business?

Aruba stock was at $22 a share a few months ago. It was around $6 a share when you made your “sell” recommendation, saying you expect it to go down to $4 a share. The only reason it has gone down at all is because of the fact that “Goldman Sachs” has issued a sell recommendation on the stock. When the next quarters results are announced, I am confident the price will go up, as it will every subsequent quarter this year….

I will write you again after next quarter’s results and we will see who has a better grasp on reality, and who is better at your job; you or me. Until then, I suggest you do a little more thorough research on the companies you make recommendations on.

Regards,

Clark Cochran

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