Well, and I know this is the Value Investing thread, but you just mentioned Ciena, which was demolished yesterday. My thought process and questions go like this (and I suspect it is from a bit of a value/arb perspective). The TLAB purchase for CIEN was to be, I believe, stock for stock on a 1-1 basis. If the deal were to go through on that basis (the almost unanimous consensus is it won't) $60 to CIEN shareholders, with the stock at about 31.
I have heard reports that the deal will go through on revised terms (there supposedly was another buyer for CIEN out there when the original deal with TLAB broke). Let's say TLAB retraces to 50 and CIEN shareholders only receive .75 of a TLAB share - that's 37.50. Anyone following this potential marriage?
On another topic, someone on this thread has mentioned LHO (LaSalle Hotels). I used to own, and still follow, Winston Hotels (WXH), which is trading at new all time lows, well below book, and yields 11%+ (now that scares me!). I did notice there is one Sell reco (not good!) out there which I will delve deeper into. Any thoughts on this owner of medium priced (primarily Hampton Inn) hotels? |
