I'm from the LU thread and follow the company very closely, and I happened to come across this thread following the downgrade news. To clear a few things up. TLAB does NOT report today after the bell, I called the company, and they will report earnings on the first week of February, early in the week. Second of all, I watched the LU CEO interview on CNBC, and he clearly stated that "Corporations that are selling "boxes" (i.e. ADCT) are experiencing a slow-down of growth. This is due to the fact that the RBOC's are buying whole networks, rather then in pieces. That is why LU is not experiencing problems whatsoever, while ADCT and smaller ones are. Finally, he stated that the problems that ADCT are experiencing are not wide-spread throughout the industry, it is an individual company problem rather then an industry problem." I know TLAB and LU are in the same league (you should remember that LU was downgraded along with TLAB the first time ADCT warned by Soundview), so they should perform similarily. Also, for those of you buying on TA, take a look at LU's chart, QCOM's chart, and ANDW (anothet telecom)chart ahead of earnings. Those charts looked horrible, but following earnings, the stocks have all done very, very well. To sum it all up, I am assuming that TLAB will blow-out earnings just as ANDW and LU have done, and the stock will have a nice runup. I bought some calls today based on my assumption. I am willing to risk 1 5/8 on the fact that LU and TLAB are very similar companies (take a look at their charts before LU reported, very similar). The way I figure it, had LU not reported yet and put fears to rest for them, they would have been downgraded as well today.
Just my opinions,
Serry Habash |
