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Ouch - INFN
finance.yahoo.com/ne...
Infinera stock plunges after MKM downgrades, says company is close
to losing largest customer Emily Bary
MarketWatch•October 1,
2018
Shares of Infinera Corp. are down 12.3% in premarket trading
Monday after MKM Research analyst Michael Genovese downgraded the
stock to sell from hold. "According to our checks, Ciena is nearly
over the finish line in taking Infinera's largest customer,
CenturyLink , away," Genovese wrote. His checks determined that the
customer is "likely to switch because of concerns with Infinera's
ability to produce new leading edge DSPs (digital signal
processors) every 18 to 30 months." He thinks there's a greater
than 90% chance that CenturyLink switches to Ciena. Infinera and
Ciena didn't immediately respond to a MarketWatch request for
comment. A CenturyLink spokeswoman said that the company doesn't
comment on rumors or speculation. Infinera shares were down 17.7%
over the past 12 months as of Friday's close, as the S&P 500
has gained 15.7%.
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I sold a 1/4 of my position this morning. Having a good year
otherwise so I thought I would offset some of the gains. And Im not
feeling as good about INFN as I once was.
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Author:
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breinejm
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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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10/01/18 at 10:03 AM CDT
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Jon,
Yes, the question on INFN becomes the obvious - what are their
prospects without CenturyLink? It's 50 cents away from the
downgraded PT, so how much more downside is there? I suppose your
answer to the balance between those 2 questions is to sell 1/4 of
your position. Funny thing that CIEN is down 3%+ on the (I'd think
it'd be solid) speculation. Makes me wonder - what was it about
INFN's equipment that led to the purported switch? Is their tech
behind CIEN? It must be costly to make a change now, I'd think. Or
did CIEN come in with a low ball offer, with the usual expectations
of recouping it downstream?
INTC got downgraded to 'underperform' at...I want to say Raymond
James with a $38 PT. Baird downgraded it to 'neutral', but raised
PT from $20 to $28 (Yes, I know that doesn't seem to make surface
sense.) But the underlying 'story' was that even thought INTC said
they can meet uptick in pc demand, some analysts don't believe
that. And while they've got this snazzy new optane memory, memory
prices are coming down. And they cite, if not present, then
eventual stiff competition in, for instance, the datacenter segment
from AMD's EPYC chips (Amd doesn't have the bulk of chips to meet
demand yet, the article said.) Bummer.
OTOH, Nvidia is reaching new all-time highs, as is ISRG. And
Abbott Labs (ABT) - the good news keeps increasing - beat out a
competitor on another medical device. I still think they have room
to run with the stent heart clips that a recent study found without
doubt cures mitral valve prolapse in most cases, and changes the
practice of surgical cardiology. (You don't need any open-heart to
do it - you can cather it through the blood vessel system from the
outside). $30k a pop for a clip. Kind of like $30k/pop for an
upgraded paper clip. What are the margins on that, lol?
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Author:
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Jam
ok
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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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10/01/18 at 12:36 PM CDT
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Jon,
It makes little sense to me why CIEN is down on the INFN
rumour/news. I want the 500 shares that got called away, and with
CIEN's price dipping below 30 now, sold 5 puts stk $29.50 Oct 12
expy for .43 cents. Don't think I'll be sorry if I acquire the
shares.
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Author:
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Jam
ok
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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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10/01/18 at 1:21 PM CDT
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