Novice Investing - Insecurity At Symantec

Date: Monday 01st 2008f December 2008 03:33:15 PM

Insecurity At Symantec - 11/03/2005

By: Novice Investing Staff

The world's biggest security software maker is not secure after all. On Wednesday November 2nd 2005, Symantec Corp (SYMC) cut its full year revenue forecast. Shares tumbled 19% even when the NASDAQ overall is rising 30 points.

One of the 10 reasons for selling is when a lot of talented employees move elsewhere. Symantec has exactly that kind of problem. The company announced the departure of its CFO, Greg Myers who is highly regarded within the investment community. He followed the departure of another key talent, John Schwarz, who left to be the CEO of Business Objects (BOBJ). The sudden resignation of Greg Myers made us ponder if there still will be other skeletons in the closet.

Strength-wise, Symantec is an example of a company that is merely down. With $ 3.5 Billion of net cash or $ 2.92 per share, Symantec is in no immediate danger of running out of money. Furthermore, it has profitable business operations and is expected to earn $1 .00 per share for its fiscal year ending on March 2006.

The unexpected departure of Symantec's CFO is a big flashing warning sign, especially after the acquisition of Veritas Corp. While the company looks solid overall, it pays to be caution. If indeed there are other skeletons lurking in the closet, investors buying now will have to pay dearly in the future.



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Disclaimer: The sole purpose of this article is educational. This article is merely the opinion of the writer and is not in any way a buy/sell recommendation regarding Symantec Corp. (SYMC) or any other securities.

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