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Zhone Technologies Inc. Message Board

  • houlamunga houlamunga Jul 24, 2011 6:29 PM Flag


    Still a believer, Still a Baggie...

    As for ZHNE, the disaster in Japan created a disruption in fiber-cable availability, which just came to my attention. No fiber cable = delayed equipment orders. Thus, most every fiber-related stock has been missing their numbers, including ZHNE.

    The good news is that demand has not gone away. Delayed purchases become pent-up demand. AAPL's monster quarter and NFLX's meteoric growth (whether it makes or misses its numbers on Monday, annual growth will be close to 50%) show that demand for bandwidth remains insatiable. Thus, as fiber-cable availability rebounds (already starting), we can expect the fiber equipment makers to rebound as well.

    In the meantime, take solace in the fact that ZHNE now trades in the low-2s, which is less than the value of its cash plus one year of R&D. In my experience, that valuation level has proven VERY profitable. ZHNE has been no exception -- it has dropped below 2 three times in four years and EACH TIME, it has rebounded to 3+ (in an average of 5-months). I'll take 50% in 5-months every I bought more yesterday.

    Waiting for small public companies to turn around comes with big headaches, but those headaches are rewarded with big profits over time. Patience and diversification (I own all of my "Stocks to Triple") is the key. 22 Jul, 08:41 AM!

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    • I begin to doubt that mr' Gomez, For all I know he could be a front analysts/clever writer for some very organized pump and dump operation. The gains never stick after his pump, which tells me someone is selling right into them. He maybe intelligent, by being intelligent doesn't make you a great stock picker. What I noticed he pumps mostly micro-cap stocks, which is a red flag always.

      • 1 Reply to sfvip
      • sfvip- To be honest don't know much about G I remember him on a Zhone CC over a year ago,
        was impressed with his questions at the time more recently he started his
        Blog with Seeking Alpha Stocks poised to triple, To me from what I gather don't
        think he would jeopardize his credibility by pumping and dumping stocks.

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