.com, this is my plan.
The day after the Merger with HLIT, I bought more C-Cube @$44+. Last week, I bought more at $86. I bought for 2 reasons. I could get more HLIT shares, and I want to increase the number of C-Cube shares I'll have after the spin.
I have been looking at the fiber optic companies. I wanted to buy another name to go with my HLIT shares. There are about 20 worth looking at.............
individualinvestor.com
JDSU is the biggest. JDSU makes less money per share than HLIT and won't grow any faster, but is priced twice as high............
biz.yahoo.com
biz.yahoo.com
Digital Lightwave is priced close to HLIT, but doesn't make as much money............................
biz.yahoo.com
After looking at other fiber companies, I decided to just buy more HLIT. C-Cube management seems to have picked a good partner for Divi. I think HLIT/DIVI will be even a stronger competitor.
Next week, there is a fiber optic show in Canada...............
dailynews.yahoo.com
I plan one more buy of C-Cube before the spin/merger. After the Spin, I plan to buy more C-Cube Semi shares. If the day of the spin were today, I would get 81% of my $s in HLIT shares. I will be under weight in C-Cube shares. HLIT is expensive. C-Cube is cheap, when compared to it's peers. I would like to own more cheap C-Cube shares.
C-Cube semi will trade on a when-issued basis, after the shareholder meeting and before the Merger/spin. I'll be buying on the first day. C-Cube's proforma, adjusted for the new share count, will show that semiconductor made $.60 per share in 1999. Management is providing guidance of 30% top line growth in 2000, and 2001. That's at least $.80 and $1.05 per share. Lehman has a price target of $33, but I don't know if they have factored in the extra shares.
Can't tell you what to do, just what I'm doing. I hope this helps. |
