There's a pretty good rule of thumb that applies to swimming and diving – if you can't see the bottom, don't dive in -- and think twice about swimming there. Likewise, jumping into a stock right after a significant revision to earnings expectation can be an invitation for successive disappointments, as companies don't often miss just one time.
With Aruba Networks (Nasdaq:ARUN), that leads to some tough choices for investors. While I definitely believe that the wireless networking (WLAN) is going to grow significantly, and that Aruba is well-positioned to take more share in the small/medium-sized business (SMB) space, I also acknowledge that WLAN spending is largely discretionary and this company could see further order/revenue disappointments if IT demand doesn't rebound during the summer.
Please read more here:
http://www.investopedia.com/stock-analysis/050913/after-hurricane-it-safe-visit-aruba-networks-arun-csco-rkus-msi-ffiv-rvbd-orcl-ibm-jnpr-hpq.aspx
Investopedia: After The Hurricane, Is It Safe To Visit Aruba Networks?
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