The accumulated deficit is an indication that there is a huge tax loss carry forward. Maybe this number is somewhere in the financial statements.
The IRS has some complex rules about how and when this tax loss carry forward can be used so it would need to be structured properly in an acquisition.
To the extent that this tax loss carry forward can be used then it is part of the financial value of Oclaro in an acquisition.
There's probably $3-4/share value in just the accumulated shares! Considering that, this company is probably easily worth 6-7$ to the right buyer. Thoughts?
@gray1808 1.2 billion in accumulated deficit...what does it mean??
Sentiment: Strong Buy
The accumulated deficits are huge and can be transferred to an acquiring company under some complex IRS rules. I found this note in the OCLR financial statements.
"As of December 28, 2013, we had an accumulated deficit of $1,250.6 million."
Open ended buys - 7M shares short, probably shorts are scared that a buyout is coming, they are covering in advance - or at least the smart ones are. This thing is going TO DA MOON!!!!
Uptrend, and someone(s) are accumulating. Can only mean two things....YEAH!!!!!! Shorty is giving up, or we are going to get BOUGHT!!
My original target for a buyout was 4.50. That's for the tech, the cash, and the customers. Now, however, there is the tax implications of the past loss carry-forward. I don't know the value of that...does anyone on this board have any numbers we can use to calculate this to a potential acquirer?
It seems that Oclaro's diminished volume reflects the size of the company now.. Large Volume will only return if a big announcement is made (good or bad)..Plus it could use a buy rating which it recently had..Having said that. Its moving average is trading in positive territory which means it should keep pushing upwards..
While I don't believe in rumor's of buyouts..
SA's article seems to suggest the recent rise is based on just that where FNSR is viewed as a buyer company and JDSU and OCLR being as sellers because "Vendors are unable to charge a premium for their innovation and gross margins are currently weighed by competitive pressures with optical makers willing to cut pricing to account for high fixed costs"
Meanwhile Oclaro is posting higher tops and bottoms as it climbs(hopefully much faster this round)...better then a downtrend anyday..
OCLR can have a value to an a larger profitable company at a multiple of the current stock price when you consider the intellectual property, cash, previous losses that can be transferred to the acquiring company, and profitable sales volumes from the new 100G products in 2015 as the 100G business takes off.
He misses getting those big bonuses and options. I miss his wonderful conferance calls, you know?
Its time to get it! AJGH seems ready to move higher after consolidation. Recent press paired with a tiny float could attract tons of investor interest and send shares of this company through the roof.