Ruckus Wireless (NYSE:RKUS)

CAPS Rating: 4 out of 5

Recs

5
Player Avatar TMFBlacknGold (98.68) Submitted: 1/2/2013 7:51:26 PM : Underperform Start Price: $21.83 RKUS Score: +42.60

I'm uncomfortable with the premium investors must pay to tap into this company's growth. Yes, it is growing. Yes, it is newly profitable. However, EPS drops precipitously if you discount the outlier second quarter. Without the monstrous 2Q12 Ruckus would have an EPS of around $0.10 - almost 1/3 of the current figure.

That being said, the company does have an awesome website and a growing niche. I just wouldn't buy into it near its current $1.7 billion market cap.

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