Will F5 Fill The Quantum Well? FFIV, PCLN

A quantum well is defined as a potential well with only discrete energy values. The origin of the term relates to quantum mechanics, but within the last few years has been applied to certain growth-driven stock on Wall Street, when there is no stopping the momentum.

To illustrate this point, let’s examine Priceline.com (NASDAQ: PCLN), a rapidly expanding online travel company. In mid 2010, the stock took a large hit falling nearly $50 from peak to trough. However, the stock then proceeded to rebound as quickly as an electron traversing a bandgap and reaching a new energy level. Priceline reached new highs and continues to climb along a steady uptrend as if the drop in the stock price had never occurred.

F5 (NASDAQ: FFIV) mirrored this activity in October of 2010. The stock got crushed at the beginning of the month, but then filled in the quantum well with a strong rebound, allowing the stock to continue undisturbed on a clear uptrend. Just recently, in mid January, F5 fell almost 30% on an inline earnings report. The stock is beginning to rebound, but has not fully recovered yet. This could be a potential opportunity for those looking to make waves of money. Of course quantum mechanics plays a vital role in all of F5’s products, as its laws help explain the very flow of electrons through a crystal lattice. The forces of the stock market could be on the same side of nature especially given the fiery growth of F5’s industry. Will F5 gap up and fill the quantum well? Erwin Schrödinger thinks so.