Broadsoft

Welcome back, and happy December to everyone! Today we are looking at a company very similar to last week's Broadcom, Broadsoft (BSFT). Comparatively, Broadsoft was established later (in 1998, 7 years later) and is headed by Michael Tessler. Broadsoft also falls under our wired and wireless connectivity category, but focuses more on VoIP, Voice over IP (Internet Protocol), which allows to call using one's wired/wireless network instead of using a lone service. The company offers three major products: Broadworks, which provides video, fax, and voice connectivity; Broadcloud offers cloud infrastructure and instant communication (IM and Skype-like services); and Broadtouch combines the two former products and provides the ultimate business communications, with a balance between basic phone and fax and newer cloud services.
When we observed the Stock Market initially, beginning in late 2010, we immediately noticed tremendous growth into 2011, but instability since. Solely from this first perspective, we can expect stocks to rise again with the end of the year, and the beginning of the next Fiscal Year - stocks typically rise with the quarter/year change in expectation of new growth. At the end of October, Broadsoft misleadingly rose their price target, prompting an influx in trading. The earnings released were higher than expected, but unfortunately also lower than the previous FY; on November 6th, the market for BSFT opened nearly 6 points below the previous day's close. That same day, however, it became a stock recommended by analysts for investment - after such a drop, it could only go back up. We advised to buy while stocks were low, as we strongly predict growth in late December and early January; we will keep our stocks on the market until this incline, then sell. Since buying after the drop, we have made about $13 in profit. We stay true to our advice and still suggest to buy while stocks are low!