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Technology Stocks : Covad Communications - COVD -- Ignore unavailable to you. Want to Upgrade?

To: rjk01 who wrote (10423)	4/27/2007 2:55:27 PM
From: Andre Williamson	Read Replies (1) \| Respond to of 10485

what the chances of a buyout? LOL and I have the answers? I'd just say who would have an interest in Covad, would there be other suitors, and how much would Covad get in such a case? IMO Covad is unattractive as a purchase - it is worth more to its customers as an independent, as it supplies cheaper services at a company-wide loss (can't get much better than that as a buyer of services), all while taking on the risks and issues of dealing with RBOCs. Though I'm all ears on a realistic buyout scenario. I think most investors would take 1.5-2 at this point. I think you are wrong on this one. I don't see why. A lot of retail investors place a little too much weight on price swings. When the price goes from $1.25 to $1.50, does that really mean that the company is all of a sudden worth $75 million more? When the price dropped from $1.20 to $1, did the company really lose $60 million of its value? Of course not. That's just a temporary voting machine, whose lever is being pulled by day traders and desperate retail investors. With Covad you have less than 5% of the float making the needle move all over the map, with great frequency. I don't care about the volatility (except when it gets out of hand with big upward swings, and my plan dictates taking some off the table :), and frankly management shouldn't either - they're in no position to control the stock price, and shouldn't try. The problem at the moment is that they're not even maintaining a minimal level of growth, which means no progress towards ultimately unlocking the intrinsic value and possibilities of the company. And it is the only ticket to a higher and more stable share price. No growth, no profits = volatility and sub $1 to $2 PPS. Andre