My incomplete message updated:
.....When major board members resign, it is usually a very bad sign, and probably these board members are now selling their significant shares......I also think the stock is giving a signal of more bad news coming down the pipe......Instead of getting their core buisness in order, Ciena has moved expectations out to a few years hence, and entered into what seems like much more speculative ventures. Meantime, they are extremely vulnerable to their competitors advances, which require mainly brain power; something easily acquired...Ciena is now a very nice short candidate...In particular, I should have remained disciplined and liquidated my entire position at an earlier date. However, to be fair to myself, I don't think I could have anticipated a major dillution with no expectations of improved earnings, and no shareholder approval....I don't understand all the media attention paid to what is clearly a broken down tech play that has failed consistently. One should stick with companies that have diversified products, multiple customers, earnings, earnings growth, and market share growth...companies like uniphase and jds fitel...Smart people making things work, without monumental screw ups that wipe out entire shareholder values virtually overnight...For those of you that believe board members resigning is a good sign, I suggest you stick to investing in mutual funds......R |
