i appreciate the fact that "institutions will not sell" but i can't figure out why they are letting this trade lower and lower....is this simply done so they can purchase more shares at a lower price????
Why don't you call IR at tellabs and get the answers to your questions right from the horses mouth? Then you can post it all here and be the hero.
Here are the facts ... new products carry skinny margins and lose money for the company on an operational basis. Prabhu quit! No CEO quits at a time when fundamentals are expected to improve. Rather CEO's leave before the sh-t hits the fan or they get fired afterwards. Sales and earnings trends are declining; the forecast is for more of the same.
If the company's stock repurchase program is or isn't underway it clearly is a poor use of cash since it is the cash in the bank that contributes to earnings keeping them in the black.
Bottom line, tlabs new products are late to market and up against formidable competition, their legacy stuff is in decline, the CEO quit, analyst's forecasts continue to fall, the economy is at some risk of recession, terrorists still walk the earth, the consumer is waist deep in debt, ... it all spells a tlabs stock price of $3 before it sees $10.
If you listen to the CreditSuisse technology conference presentation it seems that there is quite a bit of business happening but whether and to what degree this will translate into earnings growth remains the question. Their products seem to be taking hold with various vendors according to what was said but the question of how profitable still remains. It will become clearer also if their crossconnect 5500 business comes back which could surprise all to the upside. Only time will tell and like they stated how they finished this year will be a prelude to how strong next's year's business will be. Hopefully they can find another good CFO that will propel the company forward and this announcement could also act as a catalyst to returning this stock's price to where it should be. Just a few thoughts.