I don't think a Tesla size squeeze is in the cards. But the probability of a squeeze of some magnitude is good.
Infinera right now has the Macro, the fundamentals, and the technicals in their favor, to varying degrees. When a stock has all three...it's dangerous and often reckless to short a stock like that. Especially a cyclical one at the start of a new cycle, in a sector that has been underperforming with lots of upside.
That said I can't discount the Shorts, with their relentless firepower. Especially in a market that's in pullback mode...if indeed we are. It's just that my bet is long INFN, in the intermediate and long term, and overall bullish short-term as well.
My dream scenario is that Cisco and oracle get in a bidding war. Cisco wins at 50. More likely Cisco and INFN already have a deal worked out w a buyout at mid 30s if INFN can hit rev milestones and line up a Verizon. Sort of what we saw w ISLN and EMC. The story and chart look very similar. Anything less than 35 would be giving the company away cheap. Maybe not 6 months ago but definitely now. I would prefer to see them do it on their own but I think a buyout is inevitable. IMHO.
Been in this since oct 2010. It's been painful. But happy I'm still in it. Tom Fallon is CEO
Of the year if he can keep infn performing which I believe he can. He definitely backed his smack w his buys!
Still waiting for no bias to tell Byron that he was right! Lol
Sentiment: Strong Buy
Not likely. TSLA has gone ballistic because that's an incredibly difficult business to be successful at, it's a story stock, the market potential is open-ended, the market potential is vast, Elon Musk has had the hot hand, and the shorts had something like 44% of the float. Infinera is not in the same category.