Tellabs Tell?

12:45 PM -- Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) shares are up 2 percent today on an otherwise red day in the technology sector. Interesting.

Yesterday, there was some chatter about potentially pre-acquisition-type activity at the telecom equipment gearmaker -- such as canceled sales calls, changes in public appearances, etc.

So far, it's all hearsay. We haven't been able to confirm anything concrete. But a few hedge fundies I have spoken with say they like the stock, 'cause "it's cheap." That's exactly the rationale that led us to add it recently to our Top Ten Telecom Stocks.

In general, all this has my Spidey Sense tingling. Something's up over at Tellabs, methinks. Our reporters will see what they can do and report back later.

— R. Scott Raynovich, Editor in Chief, Light Reading

Scott Raynovich 12/5/2012 | 3:15:07 PM
re: Tellabs Tell? That PEG is a misleading stat.

Methinks maybe you did not factor in the $1.6B in cash.

palaeozoic 12/5/2012 | 3:15:07 PM
re: Tellabs Tell? Current PEG is 3.88, highest among telecom equipment suppliers. Looks to me like the stock is overvalued, not undervalued.
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