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<< October 20, 2008, 3:40 pm
CIEN, EXTR, NVTL, TLAB: All Trading Barely Above Cash
Posted by Eric Savitz
Bank of America telecom equipment analyst Tim Long this morning highlighted four stocks that are trading at market caps just slighting above their cash positions: Tellabs (TLAB), Novatel (NVTL), Extreme Networks (EXTR) and Ciena (CIEN).
* Novatel: As of Friday’s close, trading at 14% above cash. Ex-cash, the business is trading at 0.04x estimated ‘09 sales.
* Tellabs: Trading at 21% above cash; the business itself is trading at 0.2x 2009 sales. He notes that the company has had positive cash flow for the last 21 qquarters.
* Extreme: Trading at 31% above cash. The business ex-cash trades for 0.1x calendar 2009 sales. The company has generated cash in 11 of the last 12 quarters.
* Ciena: 40% above cash plus NOLs, which he estimates to be worth about $3 a share, or possibly a buck or two more. That suggests the rest of the company is valued at 0.2x ‘09 estimated sales. Long says that he would be an “especially aggressive” buyer at current levels.
He has Neutral ratings on Novatel, Tellabs and Extreme, but contends that the stocks could find support or move higher from their current low valuations. Ciena remains Buy rated.
In today’s trading:
* Novatel is off 7 cents, or 1.5%, to $4.49.
* Tellabs is up 19 cents, or 5.2%, to $3.82.
* Extreme is up 9 cents, or 4.8%, to $1.95.
* Ciena is up 99 cents, or 12.8%, to $8.72.>>
Same ref: as previous post.
Woody |
