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Mark Gomes
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  • CALX Looking To Acquire ZHNE? 7 comments
    May 2, 2012 5:52 PM | about stocks: CALX, DZSI

    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, DZSI
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Comments (7)
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  • Rowdy148
    , contributor
    Comments (29) | 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 (3204) | 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 (3204) | 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
  • FTTH investment guru
    , 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 (3204) | 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 (29) | 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
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