I hope I am wrong, but what happens the next time Cisco or another customer sneezes or hints at something that could remotely impact EZ? My point is that after all these years the company has remained dependent on a small handful of customers with a niche technology that could be replaced by some customers in house or simply become obsolete. I just wish that the company could use their fine technology to expand the product line, increase the customer base, or sell to a willing buyer. If EZ were a younger company I could understand the current situation, but they have now been around for a long time and should have grown according to the typical corporate life cycle. So while I agree they have a small number of excellent products that could very well have a long life cycle, I think they should have reduced this dependence and thus the risk to a larger degree by now. At this point I will definitely trade a portion of my holdings, which I thought would have been taken from me by now. I prefer investing over trading, but EZ cannot hold any gains so it appears to have become more of a trading vehicle than a solid long term investment. Counter thoughts welcomed.
It also shows what a small fry this company really is and solid visible growth is just not there under current management. Having seen the company stock whipsawed with such ease it has confirmed to me that I need to get out of this stock. I am in the black on all my shares but should have dumped when the stock was at its historical high. I did sell some shares on the latest rumor, having learned my lesson. I am very disappointed in management at this point and I can't wait for the next bit of gossip or news from one of their two customers to jolt the stock again so I can dump more shares. They really should have sold the company a while ago if they had the chance. The founder is delusional.
True, but it appears that the market is worried about demand. The stock has been hammered in half. I wish the CEO would provide more information to investors. Hopefully they can put all that square footage to use.
Based on what? I hope you are right but as each day passes it looks like the same old BS we see on a regular basis.
Ouch..sold your KOG eh? Hmmm... I have owned KOG, TPLM and WLL for a while and added to my KOG and TPLM positions a month or two before the WLL/KOG deal was announced. I suspect TPLM will go the same way that KOG has gone. In the long run I look for these smaller players to be absorbed, including WLL, so I would have held the KOG, but I have been wrong before. In any case, feeling good about adding to my TPLM position when I did.
http://finance.yahoo.com/echarts?s=EZCH+Interactive#symbol=EZCH;range=1d Good points, but this performance has not been reflected in the share price and I suspect that the company's shares will remain volatile in a manner more consistent with a younger company. I have held EZ shares for years with the idea that they would develop a broader customer base or expand the product line thus reducing risk as the company matures. The other possibility I saw was a buy out from a company that wanted to suck up the technology, patents, etc. Neither has materialized and I am disappointed at this point that the company has not matured in the way I envisioned. With the founder having sold a lot of his stake in the company and having seen tech founders stick around too long and fly their companies into the ground at this is a bit worrying. I know he is a sharp guy, but I have seen ego ruin a lot of companies at the expense of shareholders. Having said that I do believe at this point that EZ is not going to grow into a more mature company and shareholders would best be served by a buyout. I would buy the shares I sold back at 22 bucks or lower, but I have lost a lot of confidence in management due to the failure to truly grow the company in what I believe is a positive life cycle. I know I sound negative but the ice seems to be getting thinner the longer the company remains in its current form. Thoughts?
I just want to know on what information you are basing the comments in your post. If you have some information I would appreciate hearing what you can share.
Your thoughts are based on what? If past is any indicator of the future I would say the air completely leaves the current buy out speculation and the stock retreats to 22 bucks. I say that on the fact that baseless buy out rumors come standard with EZCH shares. A barely significant one line comment from Cisco in their next earnings report or press release is all it will take to send EZ stock into the dumper. I used to believe that management had a growth plan for this company but now I see that they have no successful strategy to bolster the business and diversify their product line. As such the stock is no longer a solid long term investment in my opinion but rather a volatile flunky company that you might be able to make some money on by trading. I admit I could very well be wrong and they will make an announcement on Monday, but I wouldn't bet the rent money on it.
I am thinking closer to 22 bucks to buy back the shares I sold. The company will report plenty of goofs, gaffs, misses and customer cutbacks to get us back to that level before year end. I am resigned to trading this disaster.
I agree with your basic positive sentiment, but the timeline for the stock to return to its former glory is a bit cloudy. With management having time to pen cute little blogs on the Website but no time to keep investors informed, even with a basic annual earnings conference call, we do know that the company is certainly not shareholder friendly. Probably should have sold my shares at 25. Like a lot of small techs that provide parts to a few larger customers, CLFD is overly subject to the fortunes of a small set of large techs. I am becoming less and less impressed with the CEO as time goes on. I know that we are not supposed to criticize anything a woman in business does, so sorry. CLFD probably needs to develop a plan to sell the company at some point. Hopefully this has already been done.
Hopefully they will cancel another investor presentation and you will get a chance to dump your remaining shares.
As expected the latest buy out frenzy is beginning to fizzle. Just add this pathetic episode to the list. I did sell into the rumor although I did keep the majority of my stake. Unfortunately this stock is becoming more of a trading vehicle and less of a solid growth investment. The CEO/founder needs to give up the reigns to a more savvy executive who can move the company to a proper sale. Public companies like EZ all too often become something to keep the founder occupied while he thinks of ways to spend his fortune at the expense of long term shareholders. C'mon, when you only have a half dozen real customers after this amount of time you are not going to become the next Intel. The question now becomes how low will EZ go when the balloon completely deflates?
Well, so far the latest buy out rumor scam is looking like it will soon fizzle as in the past. Too bad that stocks can be jerked around for the advantage of traders while investors take the pipe. I dumped a portion of my position into the stupidity and will likely buy back when the stock retraces and drops to 24 or lower...How many times do we need to get hit in the head before we learn that EZ is an easy target for this sort of thing? Good company but considering the vulnerability of the product line I hope they do sell when the time before the rose is off the bloom...If I am wrong this time I will gladly hand my remaining shares over at a price that is hopefully north of 30 bucks...
Everything is for sale if the price is right. Saying EZ is for sale is not the same thing as saying a buyer is making a move on the company and a sale is imminent or even being negotiated at this time. So, just to be clear, are you prepared to say a sale is pending and we will hear about it soon, or are you just saying the company, like everything else in this world, could be bought if a buyer emerges and is willing to pay the necessary price? If the former than how do you know this?
Yes, I plan on trading about 30% of my position. My biggest concern about management is the "founder ego syndrome" where the founder takes the company private but still treats it like his private company. I don't think EZ's product line is going to transform the company into the next Cisco, so they really need to do what is best for the shareholders and position the company for a sale. Unfortunately when the founder is still hanging around after selling a bunch of his own shares he can lose sight of what is best for the people who actually own the company. Digital is a fine example of how a founder overstaying his welcome and running the company into the ground at shareholders expense. If they want to run the company like a mom and pop outfit don't go public.