<< I disagree. I believe it is very likely that LU will announce (probably this week) a major stock buyback, as we all know, LU has tons of cash).>>
LU has $1B in cash. Not that much for a company of their size compared to MSFT, INTC, CSCO, COMS. If anything, they need to increase this amount over the next year.
Someone else asked about networking "buys" amont CS, NN, FORE, etc. We're in a bear high tech market, but companies with the best long term earnings growth prospects will recover the fastest and rise the most. Many of these companies have seen their market positions deteriorate due to competition, and a few of them will eventually tank unless bought out. But buyouts in this case don't usually lead to big premiums.
CS will never see the glory again
MRVC down and out and won't recover
XYLN in a niche where competition is crushing
NN behind the technology curve to ASND, got too defocused on the
enterprise, but has a large carrier/RBOC base and some stuff
in development
FORE trying to reinvent themselves as a WAN player now that ATM in
the LAN is losing to packets, but WAN software expertise is a
two-three year effort (billing, QoS, etc.) and the time window
is closing.
CIEN Here that they have good technology.
I think CIEN and NN are the two that offer the most to an acquirer. ASND has good growth prospects long term, and is a buy in the 30's, but is still expensive on an acquisition. |
