I'll help get the last 200 going, because I'm going to start a debate. Of course, the sad and unfortunate thing is that I won't get 36,000, or even 35,900, because someone else will.
I think that ASND -- which is big in electrical switching -- should acquire CIEN -- which is big in optical transmitting (and, ultimately, switching). ASND should not do this if it plans to be acquired by LU (which has its own vaporware optical product).
However, if ASND plans to grow into a multi-billion company on its own, the next logical leap from RAS to ATM should be to DWDM.
If ASND could get CIEN at $54/share (9 x sales), that would be $5.4 Billion. For that, ASND would pick up $600MM in sales and net income of about $160MM/year.
With an acquisition of CIEN, ASND would almost immediately become a $2B company.
With an acquisition of CIEN, ASND would cement its relationship with WCOM as a full service supplier (WCOM already purchases from CIEN) and would further cement a new relationship with ATT (an early funder of CIEN).
This acquisition, of CIEN, would be as compelling, in the long run, as was CSCC last year.
Gary Korn |
