Sorrento Puffs Itself Up For An IPO
There's three reasons for coming to this conclusion.
First, Sorrento's announcement takes a bit of believing. It says the upgrade of its Gigamux DWDM product will support 64 channels each operating at 10 Gbit/s in a range of topologies, including rings. That amounts to a huge leap forward in technology - so big that competitors and analysts are suspicious. They say it's hard to see how Sorrento could make such equipment at a price that would be attractive to carriers.
Second, this follows hard on the heels of other announcements that look as though they're designed to make Sorrento attractive to investors. These include deals that could generate large orders and the appointment of a new president for Sorrento, Oren Shaffer.
Third, Osicom Technologies Inc http://www.osicom.com (Nasdaq ticker: FIBR) , Sorrento's parent company, is probably looking for a way of boosting its own share price, which has slumped in the past month, from a high of $149.75 to below $40. See http://quotes.nasdaq-amex.com/quote.dll?chart=1&page=charting&mode=basics&symbol=FIBR%60&selected=FIBR%60
So, if an IPO is in the offing, is Sorrento a company worth investing in? The best way of addressing this question is to take a closer look at the company's technology and business dealings.