Most the time, their forecasts are lukewarm at best. And most of the time, they deliver lukewarm.
To say management has failed to deliver, in a broad sense, strikes me as inaccurate. They took a company sinking fast and now it's stable and doing ok.
Thing here is that it is *obvious* that Covad the company is not going anywhere fast, regardless of what happens to the stock price.
So many retail investors whining about a comment about irrational run-up. They all take that to mean that management doesn't think the company is worth $2.50. I've only seen stuff requoted, but I wouldn't assume that. When company metrics increase by 1% yet its value goes 3X, the rate of stock price growth is truly irrational. Not gonna put words in their mouth, that's what I think (agree with wadi rum on the Covad board).
Again, too many people focusing on the stupid yo-yo. If you buy in, you have to be able to stomach a 50% haircut (yes, even from here) without getting ulcers. And you have to believe that you have a profitable exit opportunity.
Also, the desperate anticipation of more partnerships. Partnerships aren't exactly driving the boat anymore, and in most cases the benefit to Covad from these is marginal, when they are actually executed. In others, it's probably a waste of management time.
Investors need to face the reality that it's the business side driving this company, that LPV will probably kick in and be worthwhile at some point but isn't going to move the bottom line that much for a while yet.
And what's with the speculation about Covad getting involved with IPTV? Now if anything is irrational, that is. It's positively nuts but I'll betcha there are some on that board holding out hope for something like that. Get over it.
BTW, the way the lines break on your posts make them really hard to read.
Andre |
