I think I believe you. Pope Francis decries the tyranny of markets - I think he meant the tyranny of market makers.
Totally disagree - Big M&A consolidation of this sector is way overdue - it's costly and time-consuming to live with this unacceptable status quo, too. This stock was way oversold, largely because of #$%$ management and an overreaction to a cyclical downturn. The management has changed, and the buying cycle is showing small signs of turning. OCLR has its problems - it can't seem to right-size its sprawling operation - but if there's any indication of this management making the tough decisions to reduce its payroll, then the company has a shot as profitability. M&A pick-up or not, OCLR is finally doing the right things.
Bad-mouthing a headcount reduction, from an investor's standpoint at least, doesn't make any sense. Other than trying to get longs to unload their positions, what's the motivation?
They'll sell before they go bankrupt - bankruptcy is too messy to recover assets from. And remember, if company were sold for 2x current revenues it would fetch about $7.50 a share.
All true - but do the new CEO and CFO have the cojones to get the restructuring done, much less going? Or will they blame various nations' regulations from keeping them from reducing payroll and overhead? I worry these guys too are not up to the job.
You might be right about all that but it's still a takeover play, Jeebe. Too much unrecognized value, too many potential acquirers, too much evidence that OCLR management is positioning for a sale, including an inhouse CEO doing the equivalent of janitorial work. So you are right, it's over, and something else is beginning.
Hey Dr, this doesn't feel like a headfake - it feels like a move based on real and substantive change at OCLR, and an upswing for the industry. Correct us, please!
Chief, all of your reasons -- all valid and insightful -- absolutely beg consolidation of the industry. Every one.
Separately, the provision that gives 30 days to the Swiss company to buy the other two units is quite simply an invitation to an auction - probably one that is quietly under way.. Oclaro - its core telco business at least -- will belong to FNSR or JDSU by the end of the year.
The earnings announcement will not be about results -- it will be entirely about outlook. The latter will drive the price action in the weeks ahead, because this little matter of impending bankruptcy, for the moment at least, has been lifted. This is a major shift -- 10 million shares traded today says so.