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OT - INFN
<p>Barron's news story led with the disappointing guidance
and the stock being down 13% AH. I'll be interested to hear how lt
cap interprets what happened, as well as the analysts when they
weigh in.</p>
As I think of it, the thing that bugged me was the 'back and
forth' mgmt seemed to keep skipping over in giving some specifics,
mixed (muddled) with unknown stats. And while 'lumpiness' happens,
the 'back up' references to the secular trends rather than INFN's
performance specifically, i order to keep a fair number of
statements 'positive' feels a bit like a cheap trick - altho I must
say that when they did talk about future growth, there were no lack
of confident statements, for what that's worth
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It was a very disappointing CC. Not much in the way of
specifics, all very fuzzy if you ask me. It certainly seems
that both Enterprise and Telecom CapEx are the issue and they have
no clue if that will uptick this year. The slowdown around the
world, including the soft patch stateside is playing into this. It
is affecting across many Industries, as this earnings season
attests.
I do believe when they state that InPhi is not a real threat, it
will limit their growth only in the very short distances and only
in the Data Center Interconnect segment. I too have no doubts when
they say the bandwidth trends are not changing. This is truly
a secular trend, one that will last for at least another
decade.
All that said, the company is still growing, and after this soft
patch, it will renew its growth, still in the high teens, IMO.
The beating INFN has taken is excessive, I did
think that at $23+ it was way ahead of itself, nut at $16-$18, I
believe it would have been fairly priced. Mr Market certainly
overshoots in both directions. Today's additional declines are
simply brutal and overdone, IMO.
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Author:
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LongTerm
CapGains
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Subject:
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Off Topic
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Sentiment:
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Neutral
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Date:
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04/28/16 at 7:13 AM CDT
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