All of these networking stocks are way too cheap.
Some of the cheapest are BAY, USRX, VST, MRVC,
CSCC, NPIX & XYLN.
My fair value calculations, based on 2 years
future earnings and growth expectations are:
symbol Fair$ Curr$ Room %
USRX 70.06 61.00 9.03 14.9%
BAY 29.42 19.50 9.92 50.1%
VST 22.25 14.50 7.75 53.4%
MRVC 25.73 23.50 2.23 9.5%
CSCC 32.09 32.63 0.00 0.0%
NPIX 17.61 13.75 3.86 28.1%
XYLN 32.30 20.88 11.42 54.7%
The best story there for a buy out is MRVC
with its technology and explosive earnings
potential. BAY is another possibility
given it's severly beaten price even with
a price war. Bay would be expensive. USRX
is done. CSCC another expensive possibility
envolved in wans. Infrasturcture problems
with wans, rely to heavily on other
idustries to bridge the distance, insiders
with 81% ownership. VST provides
infrastucture for networks, interesting, but
how would if fit with a suitor? VST
insiders hold 62%. NPIX unstable earnings
are revenues, insiders with 72% ownership,
not likely. XYLN has atm focus, stong
possibility if you get management and insiders
to consent their 57% ownership. Explosive
growth and prospects for XYLN.
I think the key here is existing business,
contacts, upgradability, and technological
superiority. I also get the idea that IBD
knows something. They pride themselves on
bring good companies to investors sights.
They have done quite a bit of coverage on this
company and it lends me to believe there is a
conection there between IBD, Noam, and INTC.
Everything I specify is my pure speculation
and wildest guess. Food for thought is all.
Please feel free to constructively criticize
my efforts, this is a learning experience for me.
Wayde. |
