Ciena Sick With SIV
Bad news? Not horrible. Ciena was trying to diversify and put its cash to work. Unfortunately, two of the investment vehicles it picked careened off a cliff, Thelma & Louise-like, as noted in more somber language by the Wall Street Journal. The WSJ writes that one portfolio of investments "stood to get only about 44% of their current claims from an auction of assets..."
So is Ciena dead? Dying? Irritated? Inflamed? Looking a little pale?
None of these, is the answer according to JP.MorganChase 's Ehud A. Gelblum. In a note to clients today, the good doctor Gelblum wrote that Ciena's doing well, even though its stock is falling like a flan in a cupboard. He did drop a hint of good times ahead, however, when he wrote that "the World Wide Packets business is on-track to begin deployments at AT&T in F09, a contract we believe, based on our industry conversations, is worth $200M over 5 years."
Moral: You can cure anything -- ANYTHING -- with Ethernet.
— Phil Harvey, Editor, Light Reading