F5 Networks Inc provides software-defined application services designed to ensure that applications delivered over Internet Protocol networks are available to any user, anywhere, anytime, on any device and on any network. It’s net margin is 21% and Return on Capital is stunning 480%. It’s valuation is not super low standing at Price-to-Free-Cash-Flow = 14.8
FFIV represents a case of a great profitable and efficient company which could be considered a nice value investing pick. But if we apply Harmonic Elliott Wave analysis we will see that it completed a huge five wave pattern started back in 2001. What it implies is that we should expect a huge [A]-[B]-[C] down corrective move. Let’s wait until it first drops to the first green target box in between 118.40 and 113. But most likely that could be only the first leg of a corrective decline.