Pat (the gnat):
One thing you might have missed in your research.
The technical leadership of AVNX is the same leadership that took ETEK from almost nowhere to that exciting entity that attracted JDSU to propose the merger now pending. I am talking about Simon Cao in particular and Paul Jiang. These two, along with Jessy Chao, provided the senior leadership that turned ETEK into the dynamic company that will now join JDSU in the optical communications markets.
Furthermore, in a close reading of the AVNX technology, strategy, and solutions in meeting the deployment challenges involved in the transition to the upcoming all-optical network, it is nice to know that AVNX has secured the best leadership in the industry (tried and true at ETEK) and has surrounded them with the assets, technical-patent-cash and otherwise, to meet the challenges of the future.
No wonder George Gilder got excited. Who wouldn't?
Certainly there is risk involved. And you have covered this area well, taking all of your material from the AVNX prospectus which, like all other prospectus offerings, is obligated by law to hedge every bet so as not to mislead the naive and inexperienced investor. Due diligence is more than just a phrase.
AVNX is more than a mere passing fad in a rapidly changing optical universe. As stated in the Prospectus Summary:
"We believe photonic processors will enable the next-generation, all-optical network, which is necessary to support the increasing demand for capacity, or bandwidth.
Our objective is to be the leading provider of innovative fibre optic-based solutions that enable our customers to deploy and optimize fibre optic networks. . .We believe our approach will drive demand for our products and help enable the transition to the next-generation, all-optical network."
Certainly, JDSU is a safer bet, even more so with Cao's former technical successes at ETEK soon to be merged. I continue to own JDSU.
But AVNX possesses greater potential for another home-run type of company with the Cao leadership in the technical arena conjoined with that of Walter Alessandrini in the executive chair. Alessandrini earned his wings as the Chief Executive Officer of Pirelli Cables and Systems, NA.
Conservative investors will continue to choose JDSU and SDLI. The hardier among us will include some AVNX. |
