Based on ROE, PS, PE, book value, cash per share, I think anything below $14 is definitely buy with little downside risk. Some engineers may want to leave, but they have to join big red-tape companies like NT, LU which have nothing similar to a start-up, or they have to relo to Italy to join Pirelli. More engineers may want to join the company with the low,low stock option excercise price (I would if I knew anything about optical network).
This stock reminds me of Pairgain, but then Pairgain works on copper which has competition from cable. There is nothing better than fiber, and even if Ciena loses some market share, the entire fiber market is still growing fast. |
