MM are going to have a field day, Watch a 1.50 swing up some point this week. FNSR has fully missed the market run and has a looming cycle and is cheap, This due you watch. Might be the last chance for the MM to cover shorts on non affliated news, Since when does what OLCR do affect us give me a break there a struggleing company with merger problems hence there huge miss.
I think FNSR is down today because Jefferies reported that 100G pricing is eroding rapidly. These guys keep trying to push FNSR south so they won't look like big fools in their earlier call for FNSR PT of 7.50.
if the price erosion issue is true, then the guy who owns the carrier customer will make more $$$ eg ALU. I got a price on a long range 10 gig XFP and these were $5k each. Somebody is making margin. Maybe its like airplanes, gotta eat the loss on the first units to make the bank in the long run. But these guys seem to cut their prices each January, which is the Moores law effect which always happens so there's no information in the Jeffries statement of price erosion.
problem is the last time we had a boom in this space was late 2010 and early 2011. All the optical stocks traded in harmony with each other, all the boats were floated by the boom. That would mean its different this time around, which is always hard to believe.
Chief,now Needman has countered Jefferies saying FNSR is indeed selling it's products to people that compete with them as even they recognize the quality!
Jefferies has a agenda,and it has nothing to do with honesty.