As both a CIEN and a TLAB shareholder, I think I am qualified in saying that you're overreacting here. TLAB/CIEN as a merged company is no worse off than it was when it announced the merger. In fact, I think we're all still way ahead. As Birck said on the CC, this warning will have no affect on future earnings; they still expect no worse than 2-4 cents dilution. With CIEN, TLAB gets a push-the-envelope, high-octane company to complement its reliable, if uninspired, Digital Cross Connect/Echo Canceller business. Cisco is still licking its chops to get a crack at CIEN, and would swoop in if TLAB was ever stupid enough to walk. Yes, this is a bit of whiplash, but it really is exaggerated because TLAB had a blow-out quarter that lifted both stocks into rarified air that couldn't be sustained. In any event, this merger is a done deal. It was approved by both boards AFTER this news was disclosed, and the shareholder vote is a formality since proxies and institutions have already committed.
DougHboy. |
