Craig,
Hate to spoil your quick analysis, but Ciena did trade a significant amount of stock after the closing bell. In fact, the close was accompanied by TWO rather noteworthy headlines that received pick-up from Bloomberg and which stated (quoted verbatim): 16:00 1) *Tellabs Knew of Contract Loss When Merger Terms Renegotiated, and 16:00 2) *Tellabs Knew Ciena Wouldn't Get Contract, People Familiar Say...
Immediately thereafter Ciena in after hours trading moved from its close of 19 7/16 to as high as 21. The trading remained constant until 5:00 pm est.
I hate to give credit to the management team of any public company-- as few deserve it-- but there really aren't any of you out there that believe that upper management of Tellabs failed to account for the possibility that Ciena might not win the Digital Teleport contract when they re-negotiated? Don't mean to offend you Arkansans, but if there are any of you out there who do believe this I bet I can get you access to a killer piece of property in a tract of land called Whitewater.
Though it seems apparent that the market will continue its staggering tomorrow, especially during the morning, I, for one, will not be surprised to see Ciena gap 2-4 points higher at the open, so to those of you who are short, be prepared to do some covering, or why not show some guts and short some more.
Robert W. |
