Ixia expects its 4th quarter earnings to drop to 7 to 8 cents a share, announced last Thursday. This drop is mainly caused by Cisco’s cutback in spendings, but it seems like the shareholders are overreacting. Heavy Selling activity started after hours on Thursday and continue on Friday morning. The stock price nose dived to as low as $10.52 or $4.41 from Thursday’s close. The price rebounded slightly in the afternoon and closed at $11.90.
I thought Ixia is a great company with great products, nice margins, clean balance sheet, and no debts. So I bought the fears and got into the stock in the low 11’s. It should rebound from here.