Infinera CEO Shows He's a Believer
The CEO of Infinera Corp. (Nasdaq: INFN), Tom Fallon, has made a "balls-of-steel" stock purchase ahead of the company's big announcement next week.
That's the phrase analyst Andrew Schmitt of Infonetics Research Inc. wrote on Twitter Monday after an SEC filing revealed Fallon had acquired 50,000 shares on the open market -- that is, through normal channels and not through bonuses or options.
It's the kind of thing the market likes to hear. Infinera shares were up 58 cents (12%) at $5.44 by late afternoon trading.
Fallon's purchases were made last week at a weighted average of $4.47 per share. He also exercised options on, but didn't sell, 100,000 more shares at $2 apiece. He now holds more than 624,000 shares, according to the filing.
Infinera is ramping up its new DTN-X platform, and it has a big announcement coming on Dec. 6. Sources assume it will be the signing of CenturyLink Inc. (NYSE: CTL) as a customer, Infinera's first win at a Tier 1 North American telco.
Even so, the company's stock has always been a bumpy ride. Infinera's stock has dropped steadily for most of this year and is trading at about half its level of January 2011.
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— Craig Matsumoto, Managing Editor, Light Reading