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Andrew Schmitt  

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  • Clearfield: Nice Company, But About 1/3 As Nice As Investors Think [View article]
    At least the author has skin in the game in line with his opinion and I can see how he reaches these conclusions. But calling Clearfield a maker of plastic parts is major misconception.

    In order to sell these "plastic parts" they must be reliable and failure free in floods, hurricanes, ice storms, and remain unmolested when 13 year olds decide to use them for target practice. This reliability leads to trust, trust that a vendor like CLFD builds with a carrier. This is not a business you just waltz into and claim legitimacy. No one wants to spend $20 instead of $30 per home on installs if it means the equipment doesn't have field reliability. It also needs to be easy to use by techs rolling around in trucks who are scarce and expensive to retrain.

    So, there is a huge moat to this kind of business, it just isn't apparent to folks who don't understand it. It isn't an accident that this company has gross margins similar to companies like Finisar or Ciena, which do much "harder" things. That is a result of market pricing and it should be instructive to you.
    Feb 11, 2014. 04:01 PM | 2 Likes Like |Link to Comment
  • Clearfield: Nice Company, But About 1/3 As Nice As Investors Think [View article]
    If this company triples sales at 20% operating margins I can guarantee you it sells for a lot more.

    If you are right then why do the insiders keep buying at these valuations? Who has more operational knowledge - you or them?

    Good luck.
    Feb 11, 2014. 09:44 AM | 4 Likes Like |Link to Comment
  • Infinera's 100G Inflection Point Moment Arrives [View article]
    I'd also like to add that my work didn't echo Frost and Sullivan's - my data came out before theirs.
    May 31, 2013. 02:48 PM | Likes Like |Link to Comment
  • Infinera's 100G Inflection Point Moment Arrives [View article]
    Looks like my work was mentioned a lot in this article. I'd just like to direct readers to a document I wrote in July 2011 which lays out the thinking behind the transition to 100G. I think it is still very relavant reading today.

    http://bit.ly/18EkrWy
    May 31, 2013. 12:55 PM | Likes Like |Link to Comment
  • JDS Uniphase Corp. F1Q10 (Qtr End 10/03/09) Earnings Call Transcript [View article]
    You've got the date in the title in Euro format
    Nov 8, 2009. 05:34 PM | Likes Like |Link to Comment
  • Occam Networks: The Future Looks Great [View article]
    Note the RUS money must be spent by Sept '09, not '10. The provisions of the bill indicate all money must be allocated by Sept '09 unless specifically said otherwise and while there is a clause in the 4.5M Dept of Commerce section there is no such clause in the Dept. of Agriculture RUS plan.
    Feb 26, 2009. 10:52 AM | Likes Like |Link to Comment
  • Occam Networks: An Obama Broadband Winner [View article]
    Excellent article.

    Carriers will be selecting vendors not only on technical merit, but also their history working with the USDA rural broadband programs.

    One thing not mentioned is the fact Occam has extensive experience (positive and negative) fulfilling business under the Dept. of Agriculture programs. Navigating these complex programs is a core competency for them and isn't something that can be quickly learned by competitors.
    Feb 13, 2009. 10:41 AM | 1 Like Like |Link to Comment
  • How 100 Gigabit Ethernet Markets Will Differ from 10 [View article]
    "... any new fixed-function chip like an ASIC or ASSP will increasingly need multiple vendors over which it can recover nonrecurring development costs, which was not true five years ago."

    And the problem is that Cisco is 60-70% of the market, they use ASICs, and will always use ASICs for high volume applications so long as they are 60-70% of the market.
    Jan 7, 2009. 10:41 AM | Likes Like |Link to Comment
  • Ciena Corp: No Longer A Value Play [View article]
    Guys, at least get the proper spelling of Ciena right in the title.
    Sep 23, 2008. 09:47 AM | Likes Like |Link to Comment
  • CIENA and Bookham: A Good Match? [View article]
    Sorry for being flip. Nom de Plum described it well. Unless vertical integration results in a unique benefit (like Infinera) then it is of no value in the existing competitive environment.
    Sep 23, 2008. 08:37 AM | Likes Like |Link to Comment
  • CIENA and Bookham: A Good Match? [View article]
    You clearly don't understand how this business works.

    The last thing an equipment company wants is an optical company.
    Sep 22, 2008. 08:48 AM | Likes Like |Link to Comment
  • What Will It Take for Finisar to Reach the High End of Revenue Guidance? [View article]
    Kris - yes you are correct. $135M ->$200M. It is big but keep in mind the 10G market has organic growth too - one needs to look at market share gains as well as simple organic market growth.
    Jul 20, 2008. 07:46 PM | Likes Like |Link to Comment
  • What Will It Take for Finisar to Reach the High End of Revenue Guidance? [View article]
    I am sorry to say I forgot to include my disclosure, yes I am long FNSR.
    Jul 20, 2008. 07:43 PM | Likes Like |Link to Comment
  • ADTRAN, Inc., Q1 2008 Earnings Call Transcript [View article]
    Excellent transcription work. Please tell whoever did this that they did a good job.

    And as always, the transcripts are a great resource.
    Apr 15, 2008. 10:06 PM | Likes Like |Link to Comment
  • Where Are Emcore's Commercial-Sized Orders? [View article]
    I'm inclined to listen to what you have to say Mr. Left but re-distributing someone else's intellectual property without license is a pretty stupid mistake. Do you have the permission that the document demands?

    "Jefferies & Company, Inc. research reports are disseminated and available primarily electronically, and, in some cases, in printed form. Electronic research is simultaneously available to all clients. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Jefferies & Company, Inc."

    Big mistake.
    Apr 15, 2008. 09:02 AM | Likes Like |Link to Comment
COMMENTS STATS
58 Comments
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