re: Lehman Likes Tellabs/VivaceSteve Levy of Lehmans downgraded Tellabs just 10 days ago (along with a couple other "analysts", when he knew that this aquisition was going to take place and what Vivace had in the pipeline with respect to sales. I recollect he said Tellabs stock wasn't worth more than $4.75. Tlab rolled off it's high as a result.
So my question. Why the flip flop today? The income figures haven't changed. Something fishy here.
re: Lehman Likes Tellabs/VivaceInsiders tell me orders are accelerating. I think they will surprise even Tellabs. Watch out Kennedy, here comes Koenig. The battle of the K's. Should be interesting. Belmont stakes got nothin' on this story-to-be (yeah I'm speculating, but only having some fun here).
Looks like both sides got a good deal. Vivace avoided the re-capitation and Tellabs got real revenues. I love it. Viva Vivace!
re: Lehman Likes Tellabs/VivaceUnfortunately, this article emphasizes the positive aspects of Levy's report and sort of igniores the negatives. Levy does believe that the aqusition is positive strategically and that the integration should go well. He is changing revenue forecasts based on Tellabs own estimates, which are bound to be conservative.
However, he also states that the revenue contributions from Vivace could have a negative effect on margins. He maintains an underweight rating on Tellabs stock, thinks the stock is over-priced, and that they will still need to make more cuts to reach the right financial model.
Don't blame Levy...his analysis has been pretty consistant.
re: Lehman Likes Tellabs/VivaceBack to the same old OSS question. How are service providers going to manage and provision this stuff? If MPLS/IP becomes a hardware-based, packet-forwarding-speed type of commodity, won't competitive advantage fall to the guys with the best management software (how ever you want to define that)? Do these guys have a edge here? If not, who does? I doubt revenues are going to jump before this issue gets resolved.
re: Lehman Likes Tellabs/Vivacewon't competitive advantage fall to the guys
For the egoists amongst us, and in this context, the competitive advantage is held by the gals that know out how to transition public goods into private goods. Unfortunately, most don't understand that game. Rather most just give up their knowledge or their acummulated savings to those that do understand. (Witness the content refineries exploitation of artists, corporate exploitation of sw programmers and hw designers who are the least educated in finance, stock market IPOs taking advantage of indvidual investors, etc.)
Also, in this context, the trends worth watching are the public domain movements of content ownership and of infrastructure control. The winner will determine the future economic health of our society.
Who should win? Well, my opinion is fairly obvious to anybody that reads my posts.
It is in the best interest for our society that the content ownership be privatized over it's distribution. Why? Because private trade stimulates diversity and diversity makes our short lives more interesting. And we have the side benefit of becoming a wiser people. Also, if we don't find a way to trade intangible ideas, not only we will consume every resource we can get our grubby hands on, our descendants we'll end up being colonized by those that do figure out how to trade in knowledge. Placing our descendants on the other side of today's Iraqi "situation" is no legacy worth leaving.
PS. It looks like condemnation may be the only answer to our provisioning of public goods problem.
Call it like you will, they are all a bunch of crooks.