<< 1. why is coms up a 1 1/2 points>>
Might Mizzou - I am long both COMS and ASND, with about equal positions in both. The reasons I own them is that I like their long term growth prospects. IMO the LU buyout (of ASND and COMS) is more rumor than reality.
Without offending us ASND longs, I'll bet that 12 months from today COMS is at a higher price than ASND - split and buyouts adjusted. I base this on COMS and ASND having about equally quarterly earnings for their next quarters, based upon the street's expectations, however I think that COMS growth will accelerate quicker in upcoming quarters.
Much of ASND's price is based on buyout rumor - If we get a buyout, great we all make money. But there's softness in this price as evidenced the last couple of days, so if you own it you should own it for the long term fundamentals.
Re: FORE - well, their core business (campus ATM LANs) is drying up fast as 1) the market has shifted to fast ethernet and gigabit ethernet and 2) the big dogs like CSCO, Bay, and COMS have credible ATM solutions for their installed bases and 3) FORE is not a strong ATM WAN player in comparison to ASND and 4) they have no IP story, and 5) they are weak in ATM WAN access when compared to COMS, ASND, LU, so I think they are destined for a fate like the other tier two companies, maybe hanging on a while longer than some others. |
