Hello lml - I guess I am the lone dissenter here :). While I am bullish on CMTO, I do not think CMTO would be on people's buy list because of the valuation difference TERN and CMTO. Rather, people invest in this sort of tech stocks buy growth - top line as well as bottom line - or the perception of growth.
I have learned this the hard way when I was an one dimensional value investor in tech stocks. For many many years I ve argued such and such a company should worth 3 times its running share price because the valuation differences between it and CSCO are so dramatic. Well, I made a hit or so with the large cap issues, but the smaller caps all got decimated! [Note: I sold such small caps at a huge loss and I ve never owned CSCO in my stock portfolio.]
Having said that, TERN is no CSCO and CMTO is on the mend. Revenue growth is not bad, but margin [bottom line] needs improvement. This is understandable, since while TERN and CMTO may be the *pure play*, MOT and NT [Arris] are lean and mean, and COMS is desperate to find another *palm pilot* story for its shareholders. I think that is why people, if they are indeed comparing TERN and CMTO, favor the former b/c of its various partnership *buzz*.
In short [this is only a manner of speech :),] I am cautiously optimized with CMTO, but like you said, the proof is in the *pudding*. Also JMHO
best, Bosco |
