Buon anno nuovo, TA.
I hear what your saying. Here's my train of thought...
+ive info on NN right now:
- NN has 50 gig switch in trials right now at 2 (4?) customers
- NN xDSL showing promise (ZO mentioned AT&T Canada as a possible win)
- there is interest in buying NN by several companies
- offer of $35 rejected (my info, confirmed by others on this thread)
what's working against NN right now:
- NN has lost several employees after Lutz left, many are looking
- companies may be reluctant to make a large commmitment to NN due to uncertainty of the company
- market sell-off began today in earnest, more blood-letting in days, weeks to come
- new CEO talking about building a go alone strategy
These are my observations/conclusions. Based on that, I think it makes more sense for NN to wait it out than to sell. Short term, if a buyer is not found and the market continues to sell off, NN IMO will see the teens. If this happens, TM and Flynn have to make their number this quarter and announce deals for the 50 gig switch and more xDSL business next quarter. This will increase their market cap and TM can then command the premium he's seeking.
Somehow he has to retain a demoralized staff throughout all this. But the challenge of retention isn't any different than LU, CSCO or NT.
So that's why I'm waiting for the teens to buy in. I could be wrong, but that's a chance I'm willing to take.
Hope this clarifies my views for you.
Ciao,
peppe |
