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Friday, May 31
Infinera (INFN +3.8%) closed up strongly today. Yesterday afternoon, SA contributor Inflection...
Infinera (INFN +3.8%) closed up strongly today. Yesterday afternoon, SA contributor Inflection Point Investing made a detailed bull case. IPI argued the 100G optical transmission system market, where Infinera has an outsized share, is set to take off - Frost & Sullivan sees the market growing from $892M in 2012 to $4.8B in 2015 - and that Infinera's DTN-X systems are differentiated by their superior efficiency (aided by their use of OTN switching), unmatched scale (they support 500G channels, rivals are at 100G), and lower cost of ownership. The author also wonders if Infinera's recent secondary offering is meant to provide working capital to handle major orders from Verizon and/or Level 3.