VeriSign Shares Becoming Attractive

Shares of Internet service firm VeriSign (VRSN) have gotten crushed recently after a lackluster Q2 earnings report resulted in a broken chart. After breaking $25 per share, technical sellers have pounced. At $21 VRSN is only about $1 away from the next support level, and trades at 20 times 2005 estimates. The company should grow 15% annually for the next few years and holds $3 per share in cash and no debt. If VRSN can hold the $20 level, it looks like an attractive entry point.