Seeking Alpha

Mark Gomes'  Instablog

Mark Gomes
Send Message
With over 20 years of professional experience, Mark Gomes has grown to become one of the world's most experienced technology stock analysts. He is also a Masters Track & Field world record holder and U.S. Gold medalist (http://www.fasterthanforty.com/hello-world/). Currently, Mr. Gomes is... More
My company:
PTT Research & Pipeline Data, LLC
My blog:
Poised To Triple
My book:
Faster Than Forty
  • CALX Looking To Acquire ZHNE? 7 comments
    May 2, 2012 5:52 PM | about stocks: CALX, ZHNE

    On CALX's earnings call last night, management expressed keen interest in improving its international footprint.

    ZHNE would provide CALX with a business that derives over 60% of revenue from outside of the U.S. (despite a substantial commitment to U.S.-based manufacturing).

    CALX already acquired one Stimulus-related competitor (OCNW). Taking out ZHNE would provide the international exposure it seeks along with a company whose expenses could be substantially improved to the benefit of its acquirer.

    Considering the nascent recovery in Stimulus spending, the timing for a deal could be right.

    Disclosure: I am long CALX, ZHNE.

    Stocks: CALX, ZHNE
Back To Mark Gomes' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (7)
Track new comments
  • Rowdy148
    , contributor
    Comments (24) | Send Message
     
    That would be great if it happened. I have loading up on ZHNE every time it dips below a dollar.
    2 May 2012, 08:22 PM Reply Like
  • Mark Gomes
    , contributor
    Comments (1910) | Send Message
     
    Author’s reply » Same here, Rowdy. Just be sure not to get TOO loaded up. Small companies involve risk. I always feel good about the risk/reward, but never know which ones will pan out great versus poorly. Gotta spread 'em out and play 'em right!
    2 May 2012, 09:46 PM Reply Like
  • DanielPotter
    , contributor
    Comment (1) | Send Message
     
    Mark, Do you think that it's worth the risk for CALX to take a company like ZHNE (who albeit has a strong market in OLT) that has been on a downward spiral since it's resurgence in early February?
    3 May 2012, 12:37 AM Reply Like
  • Mark Gomes
    , contributor
    Comments (1910) | Send Message
     
    Author’s reply » The downward price spiral is exactly why they should acquire the company. If car prices spiraled down to $500, everyone would acquire one. Stock price is irrelevant. What matters is the true value of the underlying company.
    3 May 2012, 01:08 PM Reply Like
  • Chris Tarbert
    , contributor
    Comments (40) | Send Message
     
    Calx should buy CLFD and off a more complete solution. Unlike OCNW, Roth ain't giving the company away. He just bought 30k shares more
    3 May 2012, 12:48 AM Reply Like
  • Mark Gomes
    , contributor
    Comments (1910) | Send Message
     
    Author’s reply » That's a sound possibility as well. I agree.
    3 May 2012, 03:34 PM Reply Like
  • Rowdy148
    , contributor
    Comments (24) | Send Message
     
    Don't worry Mark, I am not spending all of my money on ZHNE. I just buy a little here and a little there on a dip.
    3 May 2012, 05:51 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.