| To: The Ox who wrote (1938) | 2/16/2016 11:43:26 AM | | From: Tartuffe | | | | | If you own a significant chunk and have short positions as insurance, driving down the price with relentless shock and awe selling, covering your short and then re-entering the stock would give you the best of both worlds. It looked bad for INFN after the CIEN guidance, but this company is taking market share. Flat revenue guidance in Q1 is good, considering that they are now big enough to be affected by the historically slow spending for equipment in Q1. Integrating Transmode and incorporating their in house Photonic Integrated circuit positions into Transmode's products positions INFN to gain even more market share in a much larger market. Having both an end to end solution and a vertically integrated company that also develops software in fronthaul, data center, and longhaul makes this a very unique and interesting play especially considering the 3 year trend lines. They are also building inventory which to me signals a bullish mindset from management. |
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| From: Tartuffe | 2/18/2016 11:10:52 AM | | | | | | INFN has been eating CIEN's lunch in the market, and they are out in front with end to end and Terabit solutions in the pipeline. They have always been linked to CIEN's results for some reason, but this chart makes no sense to me considering they are in the best position they have ever been in in every area. Expanding cash flow, expanding product portfolio, and Expanding TAM. They plow 20% into R&D consistently, but that keeps them in front of the curve. It was not that long ago that people were laughing that they had developed a product with 100g channels. When they began announcing 1T channels, it is hard to not have the same response though. |
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| To: Tartuffe who wrote (1943) | 2/18/2016 1:20:56 PM | | From: The Ox | | | | INFN is not unlike many companies at the moment, whose stock prices have fallen 30% to 60% but their actual business hasn't changed much during the fall. You can look back at this thread and see posts a few years back where the stock was in a somewhat similar decline, even though the fundamentals were actually improving steadily based on what the company reported.
They have always been linked to CIEN's results for some reason, but this chart makes no sense to me considering they are in the best position they have ever been in in every area. Expanding cash flow, expanding product portfolio, and Expanding TAM....... |
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| To: The Ox who wrote (1944) | 2/22/2016 12:03:54 PM | | From: FJB | | | | XO is a large Infinera customer.
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Verizon to acquire XO Communications’ fiber business
February 22, 2016 09:06 AM Eastern Standard Time
HERNDON, Va.--( BUSINESS WIRE)--XO Communications (XO) announced today that Verizon Communications Inc. (NYSE, NASDAQ: VZ) has signed an agreement to purchase XO’s fiber-optic network business for approximately $1.8 billion. The acquisition is subject to regulatory approval from various governmental agencies and is expected to close in the first half of 2017.
“This transaction will create a stronger provider of business broadband services for the customers of XO Communications”
Tweet thisThe transaction would provide Verizon access to XO’s fiber-based IP and Ethernet networks, helping to better serve enterprise and wholesale customers. In addition, the acquired fiber facilities will help Verizon continue to densify its cell network.
Separately, Verizon will also simultaneously lease available XO wireless spectrum, with an option to buy that spectrum by year-end 2018.
“This transaction will create a stronger provider of business broadband services for the customers of XO Communications,” said Chris Ancell, chief executive officer of XO Communications.
Carl C. Icahn, the Chairman and Sole Shareholder of XO Holdings, said: “In 2001, I began purchasing the senior debt of XO, and the following year the company filed for bankruptcy. I then worked diligently with other stakeholders to keep XO alive, and in 2003 the company emerged from bankruptcy. The following thirteen years were a bumpy road for XO, as well as other telecoms, as we reckoned with major network overcapacity and other issues caused by overly optimistic projections and capital expenditures made by previous owners. In fact, we had to inject additional capital into the company several times over those years to keep it operating. Although this sale to Verizon does not represent a significant annualized return on our investment, we believe that in today’s environment it does represent the best achievable outcome for the company’s customers, employees and owner.”
While Verizon and XO pursue requisite regulatory approvals from governmental agencies, XO will continue to operate independently.
Evercore is serving as XO’s financial advisor in connection with the transaction. Thompson Hine LLP is serving as XO’s legal advisor in connection with the transaction. |
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| To: FJB who wrote (1946) | 2/23/2016 1:37:53 PM | | From: The Ox | | | | I am amused by the extremely low estimates for FY17 currently (11% eps growth). FY16 estimates are for 26% revenue growth but only 18% eps growth. Doesn't look like anything has changed on the analyst's side of things. Negativity and skepticism. It reminded me that a little more than a year ago, one of the published estimates for FY15 revenue by an analyst missed by over 20% of what they achieved ($738 est vs. $886 actual). At that time, they had a $15 price target. Makes you wonder why they continue to totally lowball the company year after year?
Just in case anyone has forgotten what they just reported:
GAAP eps yoy growth rate 227%. Trailing PE 33 @ $12/share.
Non-GAAP eps yoy growth rate 100%. Trailing PE 15.
YoY margin increases. 32% revenue growth. GAAP revenue for the year was $886.7 million compared to $668.1 million in 2014.
GAAP gross margin for the year was 45.5% compared to 43.2% in 2014. GAAP operating margin for the year was 6.7% compared to 4.1% in 2014. GAAP net income for the year was $51.4 million, or $0.36 per diluted share, compared to $13.7 million, or $0.11 per diluted share in 2014 |
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| To: The Ox who wrote (1947) | 2/23/2016 1:39:47 PM | | From: FJB | | | | | I am not worried about Infinera in the least. Wider factors could take things down, but the company itself and the sectors it serves - not worried... |
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