Black Box Corp (BBOX)
The Company is a network infrastructure services provider which offers one-source network infrastructure services for communication systems.
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This stock has pulled back despite good earnings momentum and a favorable P/E, providing a good entry point at the current price.
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High 3 month RS and 10 Stockscouter rating
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Black Box Corp. (BBOX) said Tuesday that it has received a Wells Notice from the Securities and Exchange Commission in connection with a previously disclosed investigation by the staff of the SEC's Division of Enforcement.
The notice informs the company that the investigating staff intends to recommend that the SEC bring a civil injunctive action against the company, alleging violations of federal securities laws arising from its past stock-option practices, according to an SEC filing.
A Wells Notice is the SEC's process by which it notifies companies of potential charges and allows the opportunity for a response.
Black Box said it is evaluating the notice and "continues to cooperate with the staff with respect to the alleged violations and possible resolution of the matters in question."
In November 2006, the company said it received a letter of informal inquiry from the SEC, requesting documents related to the company's stock-option practices since January 1997. In June 2007, the company disclosed that it received a document subpoena from the SEC related to the investigation.
Generally, investigations of stock-option practices focus on backdating, in which an option's grant date is manipulated to make it appear as if it was made at a time when the company's share price was low, thus maximizing profit for the recipients.
The company also said Tuesday that its third-quarter net income slipped to $9.83 million, or 56 cents a share, from a net income of $11.3 million, or 64 cents a share, in the year-ago period.
Shares of the Lawrence, Penn.-based provider of data and voice networking products closed Tuesday at $25.11, up 4.5%.
(Dow Jones)
Recs
The pitch for this stock can be found on the Stinky Feet discussion board at http://boards.fool.com/Message.asp?mid=27346313 . Stop by and let us know what you think of this stock.
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Value play. Getting in with a P/E of 12.8. Don't think the price target left on the table ($46) applies any more, but I'll hold it for a 10% gain, $33.50.
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Based on today's announcement of deal with T; there is some room for this to outperform for a period of time As one of the largest data co buying up T's southeastern operations should prrove to be a good move.....
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BBOX is in a niche market that develops some 115,000 different products in the communications industry. BBOX has returned to profitability and looks as if they will turn the corner in the management team with regard to stock options back-dating. If the FED cuts interest rates I expect BBOX to be back in the $50s in the 3rd quarter of '07.
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expansion stock, more and more universities are going to this software
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valueline is positive on black box--unfortunately it is up big today...but as a long term pick should beat the market anyway.
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Value Play. Good price for solid earings
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part of 4 billion usofa army contact
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Ready to move past $50.00
Profits will double this year!
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Has had an up and down ride but is aggresive and should emerge ok

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