The good news is it looks as if Aruba's management is finally beginning to address Aruba's competitive leverage in a more aggressive manner, including building on the company's advantages in price and performance.
I'm also encouraged by Aruba's new investments in sales and marketing. I believe these new initiatives should help consumers better differentiate the performance improvements of Aruba's products versus those made by Cisco and, to a lesser extent,
Not surprisingly, the stock is now beginning to respond. Knowing how quickly sentiment can turn around in this market, especially in the tech sector, I don't believe that a target of $20 is that outrageous in the next six to 12 months.
Again, this is not a scenario where I'm giving the "all is clear" signal. As with any company, you should first do your homework before buying. But I've studied this sector long enough and have seen these sorts of reactions to realize that it won't be too long before Aruba once again becomes a vacation destination for investors.
At the time of publication, the author held no position in any of the stocks mentioned
This article was written by an independent contributor, separate from TheStreet's regular news coverage.