Although I am tracking technology and this forum for a long time this is the first time I post any comment.
Take a look at the amazing way EZchip done so far in the last 16 years, from 1999 till now, from NP1 all the way to NPS.
EZchip was always a niche company trying to find its way between giants, you must have the right skills to swim with sharks – Juniper/Cisco/Marvel and others sometime as customers/partners and sometimes as competitors or coopetition .
A lot of talent was needed both at the engineering and the business side in order to survive and success for so many years – what had happed to all of that? had it been gone ?
Risks had been there all times and somehow the company talented people had find the way out, stocks was always flickering.
I am a strong believer in this company which had the vision to start a new product line under the hood just on time and become ready to the SDN/NFV market(NPS) , and get into more investment later on (MX).
Those investment didn't burn the company cache as you would expected but the company had the wisdom to somehow do the investment and keep the cache (~$200M)– why Eyal should enjoy that for free?.
My speculations are that after NPS will get into production it will track much more attention , maybe even to customers that now say no – if that happened Eyal will win the lottery, if not he will just get an amazing deal.
The deal looks to me as an opportunistic one, Eli got tired ,Cisco said no for NPS , Eyal decided to give it a chance and now everyone try to convince us why this is the best deal so ever in the market.
Personally I don’t buy this show stating that EZchip is desperate , EZchip is relatively a small company which can make a lemonade out from this lemon which will be reflected later on in the stock price.
The concern I have is about RC – looks to me that they only care about making easy and quick money and at the end of the day RC will vote "FOR" with some excuses or with some little money that will be added , I hope they will not.
This is not a win win it is WinE^2 – Win for Eli and Eyal.
I go for "NO"!!! |
