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Tellabs, AŞ Message Board

  • cstrk77 cstrk77 Nov 19, 2012 9:16 AM Flag

    Writing on the wall

    tlablong,as a long holder myself since 2007,i have seen hundreds of pumpers like you come and go,look at the charts since 2007,management has ruined this company..period and still allowed to continue.ALL management and board should have been replaced in 2008,why wouldnt you buy your own shares at cash?But you want investors to buy the shares,all they are doing is telling investors is they are on a slow road to bankruptsy,They have been screwing shareholders for OVER a decade,Shareholders want to see a all management and board change now not when they hit $2 !

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    • It is absurd for you to say that TLAB is on a slow road to bankruptcy! Maybe ALU is on a slow road to BK. TLAB IMO is on a slow road to recovery. Much of the PPS decline is not TLAB specific. Yes, losing business from AT&T acouple years ago has hurt the company and thus the PPS decline on top of the general sector slow down. TLAB at least has been nimble enough to restructure and downsize relatively quickly before losing large amounts of cash as we have seen with ALU. As for the management/BOD. Let's start with managment. They got a new CFO who has taken a personl financial stake in the company in the tune of 200k shares at $3.73. The CEO died of colon cancer earlier this year. The founder and chairman is stepping down soon. As for the BOD we now have activist institutions with representation on the BOD which we did not have before. So don't tell me that changes aren't and haven't taken place. As for buying back shares. I would say that unless they are planning an aquistion in the near future they should now reestablish a buy back now that the PPS is in the $2s. They hold their quarterly meeting sbefore the CC and the stock was well into the $3s before they announced that they beat forecasts but the stock was punihsed for guiding lower on gross revenues in Q4. If the stock is still in the $2s next board meeting and they are not acquiring anyone then I do believe that it is in the share holder's interests to start buying back stock at these depressed levels.

      Sentiment: Strong Buy

    • Exactly. I was one who thought the company had a plan. They did, but it did not work, so now the company is in damage control mode. Not bankruptcy, but slow bleed of all shareholder value. Once the cash is gone, then the final insult, a sale for peanuts with a great big .50 to the shareholder.


      Tlablong, how much are you down, prepare yourself if you are leveraged. These .10 moves are now getting to be significant percentages.

      Sentiment: Strong Buy

      • 2 Replies to basin112
      • basin, I am not leveraged or on margin and my cost basis in TLAB is in the low $3s. You are talking out of both sides of your mouth saying "once the cash is gone" and then shouting for TLAB to be buying shares at this level. As things stand right now the cash is not eroding and the company will do what it takes to not burn excessive levels of cash. In fact, the company has been cash flow positive the past 2 quarters and claims it will be cash flow positive in Q4 even with top line guidance lower than the analyst prediction and increase in R&D spending by about $10M.

        So you can't have it both ways. If you really believe things will be so bad that the cash will burn due to poor business/structuring/managment then you need to sell now and managment should be preserving their cash. If you think everything will be ok and they will get through this slow period and then see revenue/earnings growth then managment should be reinstituting the buy back program in the tune of +$200M!!

        I think they will do fine in the longer run and that is why if no acquisition is planned they should buy back shares but limit the shares bought first to anything for sale under $3, see how many shares are really available that low and then if not too many can be taken out of the float start buying more. It will be telling Ths Street a message that they have confidence in their future and be saying "heck if you won't buy down here we will buy."


        Sentiment: Strong Buy

      • Think only telco increase in spending moves them guys. Not defending mgt, believe me, but if the att and verizon's revenue and profit go up, all of you that elected President Obama have to realize it will likely take longer to get corporations to spend, no disrespect to our President, just I feel a general lack in confidence by business leaders. Regardless, he public will demand the newer technology and we will see att and verizon off their wallets at some point

        Sentiment: Hold