Landisman, its really nice to see Avanex moving up well today in line with its peers, I doubt it is just short covering.
Based on disclosure, I bought my initial long position, just a little below, where insiders and early major investors were selling at. It has been hard bearing up under, the usual doubts that such selling raises. It will be interesting to see how much selling funds did during this time, when that info comes available.
Yesterday, I put in a call to Mark, at investor relations, at Avanex, to discuss, the whole general picture. I brought up the industry developments mentioned in the, Seeing The Light, article in this weeks Barrons. He hadn't read it, but is going to.
The article didn't mention DWDM, only WDM. The author Bill Alpert, covered alot of ground, but not the DWDM area, where Avanex is focused.
Bill's final focus was on hot MEM switches. Mark at Avanex stuck to his guns, he said Avanex has done work on switching technology, that they could put into production, but they don't feel that this would be a good use of their resources. Their equipment solutions for the optical network, don't require costly complex switches in the middle of the system, and switching where the optical core meets other stuff, only requires simple dumb switches to get the job done.
Avanex's plan is to increase the capacity of the optical network, and keep cost down. Sounds practical to me.
Avanex will make their money on their whole line of equipment, which apparently large customers like Cisco are putting to use for their customers. According to Mark Avanex is happy focusing on what they know, and large co.s are happy to plug in Avanex's solutions for their customers, and use their own inhouse expertise in software and hardware to customize the fit, for those customers.
I wonder how much people, other than engineers, really understand all this stuff. I know I am still at the beginning of the learning curve.
However based on my level of exposure, so far, I still think Avanex has the most comprehensive, powerful, and elegant solution, to taking the broad band platform, to the next level. |
