Sourcefire, Inc. (NASDAQ:FIRE)

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I use www.random.org number generator to produce a number between 1 and 7,801. There are 7,801 stocks available to choose on the Motley Fool CAPS Game. Once I get a number, I go to the list, find that stock, and select that stock to outperform for the next five years.

Cyber stocks in general are on an upswing. Sourcefire (Nasdaq:fire) has a phenomenal P/E ratio, maintains volume despite its 20% increase within the past month and continues to thrive with technological cyber terrorism prevention tactics. Definitely a buy and hold!

Radiance

Fire!

I appear to be a little contrarian to other players on this one. Hopefully, I'm correct during the timeframe I've posted.

Good industry to be invested in and a leader in that industry to boot.

Computer Security expenditures will continue to grow with continued increased awareness

As smart grid comes online, it will be a target of hackers and bad guys. Sourcefire provides the protection required to keep infrastructure safe from this sort of thing. FIRE just learning how to crawl. Beginning of multi year run OR eventual takeover target.

Cyber-security is growing, as should dependable tech companies like Sourcefire, Inc.

Sourcefire's stock is currently high priced in terms or P/E However they are a fast growing company, with highly regarded software in an industry that will more and more be in demand in the future. The PE will quickly go down. They have already said they would exceed estimates. Debt/Liability is excellent. They have had a phenomenal run up and are currently consolidating. I/S budgets are ready to increase. The patient investor will not be disappointed in my opinion.

good product, small size, good record. Takeover.

This technology is not keeping up with our younger groups

Sourcefire has a great product and is a huge player in the market. They are poised to pick up even more market share and the company should turn profitible very soon.

Sourcefire is a fantastic company with a pretty good outlook if you ask me so let it drop a tad bit more, I'll just scoop more up. There's nothing more pleasant than knowing the government is a good customer of your security technology. It means for a steady customer and solid growth of 20M in revenues each year. FIRE will be solidly profitable in 2008 trading at a forward multiple of just under 25. What is truly staggering is the $4 in cash per share with zero debt that the company maintains. Do the math, you're paying $2.20 after cash for a company growing revenues at 20% a year. This company earned 18M in 2004 and should crank out nearly 70M in 2008, thats rapid growth! Little downside here with so much cash on hand.

Nero

Sagetrade

The competition to garner internet security contracts and individual customer is fierce - I don't think Sourcefire has the brawn to stompout its competitors large and small. . .

Cons: No moat, No profit, To dynamic of a market. On the plus side they do have the best product and is actively used by many government agencies. Also they are potential buy out target.

Stock got knocked down to original IPO pricing levels, undervalued.