Rustam,
Today's headlines in IBD read..."Wall Street Analysts Missed The Top; Now They're Fumbling For The Bottom"
Is it any wonder that those who have the ability to think for themselves show a great deal of skepticism toward Wall Street analysts. Not that they are necessarily stupid (some are), but they do have agendas.
Let's look at Morgan Stanley. Here the company pans Ciena, and touts Tellium. Huh? Tellium? A company that has a weak product offering, and has to buy its customers with stock options and vendor financing gimmicks. A company with an infinite PE. Give me a break.
Why MS has their hand in the Tellium till, simple as that. MS participated in the telm underwriting and are committed to help support the stock price. One way to do this is to pan the competition and have some of those funds reallocated over to their charge. No bias there, is there? Hmmmm?
Well, if this MS analyst was worth a fraction of the salary he draws then he would surely realize that Tellium and Ciena are competitors, and most assuredly competed, or will compete, for portions of AT&T's optical switching business. MS alludes to a possible win at T for the CoreDirector*. Translation: A major loss for Tellium. How about that. Tellium as you may recall was a spin off from Bellcore and is a part of the good ol boy network. So, if Tellium lost a switching contract to Ciena when Tellium had the inside track, what does that tell you? Hmmmm again.
What's up here? Conflict of interest, or blatent stupidity?
You be the judge.
Jack Hutchison
*PS: My theory is that Ciena's announced contract win merely shows the tip of the iceberg on the deal. I believe there is more, much more to this deal than is public knowledge. T would be reluctant to divulge more due to the pending Lucent buyout or takeover, as any major deal with a Lucent competitor would weaken Lucent's market cap potential, as Lucent had been the prime beneficiary of T's largess....to date. But word will leak out. We have big ears and eyes.
Stay tuned. This story is just beginning to unfold. |
