Based on what I heard in the conference call today:
- Q4 profit will be better than Q3 profit of $1.6M. I am thinking $2M.
- Margin are expected to continue to expand.
- Zhone is comfortable with $20M for FiberLAN revenue in 2014. This is the key to Zhone's future!
- This was the fourth quarter in a row where the results reported were inline with guidance provided. I am thinking credibility.
In the third week of April 2014, when Zhone announces 4Q14 results, if their results show a meaningful contribution from FiberLAN, lending credibility to "$20-40M for FiberLAN" possibility, Zhone stock price will be ready to flirt with S10 target. I think that is highly likely, and worth waiting for, and that is what I'll do.
If I could predict short term price movements, I would trade to profit from those. But I am terrible at judging the day to day price fluctuations. I think scenario painted by "trading_in_the_zhone" is probably what will happen, more or less.
Since I cannot deal with short term, I am focused on the long term, and I think we are on our way to $10 probably some time in Q2 of 2014. Along the way a lots of ups and down. Mory and the crew have turned this thing around!
my guess for friday trading(i plan to sleep though most of it)
ramp down to 3.80 first 20 minutes
back to 4.50 midday
then down to 4.20, then spike up 5+
close between 4.75 and 4.99.....
over 5 millions shares will trade
Institutional investors have requirements for small or micro caps they invest in. Two of them are.....
1. Four profitable quarters in row. Zhone just nailed that, thanks Mory and crew.
2. A share price of $5 or above. Coming soon to a Zhone near you.
This will give a very substantial boost to ZHNE share price going forward.