Tim and Company. My only issue with the FORE analogy is
It portends a $25 buy price, not $32. FORE is an example of a company where the street priced in the buyout less the premium. IF the street is holding CS on the buyout premise alone, then the price is $25. This is the rumor I am hearing, by the way. No details, not from an "insider", just that $25 and by years end.
However, is that a fair price? And, if Patel says "no", what does that mean for CS? IMHO, it means softness and a near term 12-14 trading range as the traders bail out.
The biggest issue I would have with this continuing of the buyout story is that it does not properly value CS on its own merits.
EXTR has a $4B market cap. So should CS under that valuation premise, as the SSR switches are a bigger business and growing than EXTR.
Add to that Spectrum, and we are trading at a discount. Then, just for fun, BACK OUT the rest of the company as a liability (which is a joke), essentially negating the value of Spectrum, and we're still undervalued. |
