Avid Technology, Inc. (NASDAQ:AVID)
CAPS Rating:
The Company develops, markets, sells and supports a range of software and hardware products for the production, management and distribution of digital media content.
The Company develops, markets, sells and supports a range of software and hardware products for the production, management and distribution of digital media content.
Recs
http://www.fool.com/investing/general/2012/02/08/1-big-reason-ive-had-it-with-avid.aspx
There's little or no sales growth ahead, and Avid has become a margin story from head to toe. And there's that Apple-made opportunity that seems to be slipping through management's fingers. Adobe, on the other hand, is accelerating.
I think investors will wake up from this euphoric jump to find that Avid's long-term prospects don't measure up. Cost-cutting is a delicate balancing act, and you can't really force customers to flock to your richer-margin products. Focusing on margin growth without destroying the underlying business is very, very hard. It's a risky turnaround plan. That's why I'm putting my all-star CAPS rating on the line here with an angry, red "underperform" CAPScall. That way, you can hold me accountable when I say that Avid is going nowhere -- fast.