IT,
The site didn't add too much to my data, but still I believe that CIEN is a buy at 42. Fiber demand currently is very, very strong.
Companies like ASND are constrained, in fact, because there is not enough fiber carrying capacity on which to install ASND, CSCO, BAY etc. equipment. What happens: Williams comes out of nowhere, Brooks gets gobbled up by WCOM, QWEST gets trounced by an ANALyst, then comes right back. Fiber is hot.
CIEN makes fiber do more. That is as good, or better, than putting in new fiber (Where are you going to get the right-of-way? Williams put the fiber in its natural gas lines!)
Anyway, valuation-wise, and with all the potential contracts coming down the road, now seems to be the time to buy (not later, when spending might dry up).
Gary Korn |
