The fourth quarter is usually the best and we expect a strong rebound that may surprise people. But the figures don t mean much with the company in a start-up mode and spending increased money on development. The recent price decline is a buying opportunity. Vertex rose on news of increased business, including the largest order yet for its NetWeave middleware product. The software will support a large government organization.
Vertex remains a very cheap way to play the expanding middleware market.
Not all technology stocks are getting proper respect by any means. The University of Pittsburgh Cancer Center presented promising results from preclinical studies of Demegen s D2A21 cancer compound. The principal investigator at the university called it a totally new way to attack cancer. CytoTherapeutics is a similar situation very depressed despite promising drugs in the pipeline. There s just very little interest in biotechnology except for a few of the largest companies.