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OT - CIEN
OT - CIEN
CIEN has announced their CC will be June 2nd. It continues to
move without any reason I can see - yesterday up substantially,
today down by about the same amount (~ -.57 for the low). The
covered call options for June 17th stk 16 are yielding about 5% at
the moment. it's tempting, given that I thought they were beat down
enough at $16.70, never mind 15.70. (I wonder if today's slide is
in reaction to CSCO's good results? who knows?)
Except that CIEN has disappointed for at least the last two
quarters, and the market apparently doesn't have much patience for
the sector. It's tempting but....I'll have to think about this.
And BTW - the announcement of the Google VR trajectory again
implies increased bandwidth use. I continue to 'not get' it: I
thought they were stretching the capabilities of existing hardware
with current demand. Somehow, they keep dragging that time period
and load greater. What capex delaying means are left to them?
Throttling you down to a megaphone if you exceed 500mb on your
smartphone?
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Jamok,
Service Providers are indeed dragging their feet, however, that
can only go on for so long. CSCO's guidance suggests that
thing could improve gradually for the rest of the year. I
also think that Service Providers, have enough levers such that
they can cut CapEx in one segment of their networks while
increasing CapEx for a different segment, e.g. reduce CapEx for
Wireless but increase it for Optical, Routing and Switching.
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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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05/19/16 at 4:54 PM CDT
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