It's time to get aggressive on CIEN. This deal, where they will become an optical giant, was a great one for the company and will be very accretive for next year. Yes, they had to pay more than I would have liked. Yes, they had to issue a high-priced convertible to Nortel, which I also didn't like.
But Ciena was doing outstandingly well in a difficult environment where the major telco companies cut back. They can't afford to do so again in 2010, and my thinking is that Ciena now becomes a one-stop shop for optical needs.
Ciena will now be in the sweet spot to deliver equipment for high-def mobile and fast mobile Internet. The idea that somehow this deal is a setback for Ciena is ridiculous given the growth of the mobile internet.
It is always difficult to say, "This market is dead wrong about Ciena." The swift judgment determined that Gary Smith, the president and CEO of Ciena, simply goofed here, paid too much and hurt the company.
I think that judgment is wrong. This stock becomes the cheapest now of all the Mobile Internet Tsunami plays. It should be bought aggressively.....
long CIEN
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