Noteworthy Upgrades on Thursday: Aruba Networks, Inc. (ARUN), Sourcefire, Inc. (FIRE)

Page 2 of 2

Aside from mentioning the company’s 30% growth, all of UBS’ reasons for the upgrade appeared speculative. As an investor, I firmly believe that speculation is rarely rewarded, and with it being such a highly shorted stock, I think I would avoid it for now.

Conclusion

In a previous article I wrote about analysts “following the leader” and how one upgrade/downgrade usually starts a chain effect that can dictate the trend of a stock. It is good to use this information as part of your research but you must ensure that you are assessing the stock and its valuation with your own due diligence. It is important not to make an emotional decision based on the performance of a stock, and if you refrain from making such a decision then large gains could follow.

The article Noteworthy Upgrades on Thursday originally appeared on Fool.com and is written by Brian Nichols.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2