I am writing a letter to Tellabs management requesting that they explore strategic options to increase shareholder value. I would like for them to meet with investment banks to see about going private. I figure they have enough capital on the balance sheet ($1.2B) to lever up 2x and take it private in a $2.4B transaction. This action would result in a 33% premium to the current market capitalization of $1.8B. Alternatively, I think that shareholders would be served by shopping the company around to the likes of CSCO, ALU, CIEN, JNPR, VZ, T or many others.
Please let me know if you support this effort.
Read recent article- What put sellers are seeing in Tellabs
"Value investors could also think TLAB is now attractive because its enterprise value is less than three times EBITDA--far less than related companies such as Cisco Systems or Juniper Networks."
TLAB is going much higher.
65K Shares in. Tell me what you want me to say. I'm thinking of going to the annual meeting to give those MF's some piece of my mind. They are running a good company into the GROUND. They should be SHOT. Either innovate or sell. No acquistions for these LOOSERS. They couldn't tie their own shoes. And now they get free shares purchased with MY PROFITS???? WTF.
Thank you for all of your support regarding exploring ways to maximize shareholder value.
I will let everyone know if/when I get an update.
Key 2010 Stats that will be of interest to potential acquirers:
2010 Revenue = $1.64 B ( up 8% YOY)
GAAP earnings= $156M or .41 EPS (up from $114M or .29)
gross margins= 48% ( holding steady)
net cash from ops= $288M!!
So what can you buy this company for? $750M (when excluding the massive cash on the balance sheet of $1.2B)
2011 Annual Stockholders Meeting
Wednesday May 4, 2011 at 2:00 PM CT
I am going to register this domain and take my plan public.
Let me ask everyone this...what are 1400-1700 engineers doing on a daily basis???It seems the only new technology they have is wimax which they bought from wichorus,if they bought this technolgy what the fuk has 1400-1700 engineers been doing on a daily basis for a decade.....wheres all the new products.Can you say fleecing.....
Thank you for taking the lead on this. It may be more symbolic than anything else but the management and BOD needs to know they have failed miserably at building shareholder value. At the recent tech meeting in SF, they stated several times, "We are committed to long-term shareholder value." This is not channeling trading between $5-$7.
When is the annual meeting? It would be effective if there was an articulate discussion with the BOD and Tellabs management. I would welcome an open letter to the management and board in advance of the annual meeting. I would like to know what the institutions are saying to them off-line since the majority of shareholders are institutions. I would speak directly to the issues raised in the Alpha article....IR did a terrible job not to pre-warn the 4th quarter and the CC seemed more vague than ever...
I am dead serious.
I would like to send it to the top mutual fund shareholders as well.
Any large shareholders want to take some action with me!? The more voices we have the better our chances of some true value creation.