Well, Truff, I joined you today at 17-7/8, a hair over your recent add price.
I think that (unlike PMTC, which I also bought today) this one will have some more roaches crawling out of its accounting statements. Whiff's of management, how shall we say, "lack of candor" with investors. When those things collapse, they tend to keep on doing it for a while.
On the other hand, however, this company is in a hot niche in a super hot sector, with some great products and a great new product on the way (though apparently too late to keep GTE in the fold this go around). (Its a digital local loop product that can not only start real low and cheap, like AFCI's current products, but also scale beyond the 2000 line limit of its current products.) Very attractive to US RBOC's.
All in all this is a primo takeover tarket. Among the most primo in the telecom equip. sector, I should think. The market thought it was a likely target when the stock was around 37 (so it ran up to 42 following the DIGI takeover announcement). Its a steal at 18. So could go out at 28-32 I should think. Soon wouldn't surprise me.
Yes, Tellabs could do it. The market would react positively. Digestion problems what with Ciena (which I hold) and Coherent, but also a unique opportunity. I think Lu, Ericy, and Noka could also be interested. Perhaps also Nortel.
Doug |
