Greg, I tend to agree with your figures but it should be noted the company has numerous investments that have not even gone public. Your $600 million figure ignored a very potentially realistic investment portfolio closer to $2 Billion. These investments are spread around the globe in companies that will be playing in the 3G Wireless and Broadband arena. Your figure is correct if you do not account for the incubation period and metamorphassis needed to bring these investments to their fruition.
Nevertheless, if we consider todays liquid value on their investments we would get approx. $600 million. This added to their current cash position of $2.7 million would leave us with a net total in cash of $3.3 billion. Assuming jfs's understanding from the conference call to be correct, the cost of their acquisition from NT, their legal settlement, losses from the quarter and their sale of property for $175 million would leave the company with $2.8 billion. This would leave a cash value of $8 a share. This is very conservative assuming none of their investments that are currently in incubation will ever get to their fruition. If you assumed their investments to be as successful as their prior investments in JNPR, AETH, EXTR, and PALM, then it would be fair to say they have a potential of $4.7 Billion in cash and investment. Deducting the aggregate expenses from last quarter would leave us with $4.3 Billion, which would be $$12.29 a share.
Now couple this with their revenue run rate at about $3.5 billion and a substantial position in the emerging markets of Wireless, Broadband, VoIP, LAN Telephone and Home Networking growing at 20% annually. This leaves us with a potentially very powerful company. This is no Xerox!!!!
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