Blue Coat Systems Inc (BCSI)

(A Top Pick Nov 3/05. Down 52%.) They had some pretty good earnings momentum going into the fourth quarter last year. They missed their numbers, in options scandals, staff changes. Sold his holdings.

Had a huge run and was priced to perfection going into this last quarter. Earnings came in fine, but revenues came in light. The market took it out and shot it. Revenues were not as bad as it looked. They have to recognize revenues for their product Web Filter over its life time which means spreading it out. Relatively cheap. Still likes it.

(A Top Pick June 13/05. Up over 100%.) An accelerating growth story. They make sure employees aren't using the internet in a bad way. It also protects corporation networks. The software is basically selling itself. Their past 3 quarters have been 80/90% growth.

They protect corporate internet from employees letting viruses into the system. They run a parallel internet system. Starting to get some traction. Last quarter was just a blow-away quarter.

(A past top pick Mar 2/04. Up 40%.) Really starting to accelerate. Could see them making $1 a share.

Massive acceleration on their business. Analysts expected a loss of $.30 a share, but they had a $.22 profit.