Another recommendation from my father. I don't disagree with his evaluation, it's a gamble with nearly a 3 to 1 pay off that's burning cash and getting killed. However it is positioned well in the 100GB market, and while it doesn't fully exist yet, this leap in fiber transmission is essentially necessary to continue with telecommunications, internet, and entertainment growth.
There's a little bit of MGM here for me (goes to near zero or more than doubles), except INFN has zero debt. Yes, it's burning cash but it's got some in reserve. I'm rolling the dice with 1/2 my 5% target @ 6.10, and 1/2 my 5% target at 6.25 while reserving the option for an additional 1/4 of that volume twice (for a 1/3, 1/3, 1/6 1/6 model) should I decide it's warranted.
Momentum wise I feel like it can lose a few more percent, even though it's $6.43 with an RSI of 38.65. Again, it's bleeding money and this is a down economy - and I predict it'll be getting worse. Whether I hit my targets by Oct 5 or not, it's cool. If I do hit them, I'll look to sell around 18 in 2 to 3 years (though it may well be a bumpy 3 years).
In the end I like it enough to roll, do your own due diligence and post your thoughts here.
Update: I'm a cheap fuck. 7/28 - $9.15 after posting 62% profit gain vs expected loss. I'm keeping my other bids out, and considering adding another 1/6th when the price settles a bit (volume is way down).
Update2:This stock might be cheap after their CEO announced his resignation and a failure to meet Q4 expectations it sits at 8.21 as of this writing (11/16/2010), I still like this company, but with downward pressure the way it is I still like a sub $7 price point. I'm sure in mid to late 2011 it has a high chance of breaking out when sales of it's 100 GB optical switches go live, but I can wait until the December sell off for that. Still keep this one on your radar.
There's a little bit of MGM here for me (goes to near zero or more than doubles), except INFN has zero debt. Yes, it's burning cash but it's got some in reserve. I'm rolling the dice with 1/2 my 5% target @ 6.10, and 1/2 my 5% target at 6.25 while reserving the option for an additional 1/4 of that volume twice (for a 1/3, 1/3, 1/6 1/6 model) should I decide it's warranted.
Momentum wise I feel like it can lose a few more percent, even though it's $6.43 with an RSI of 38.65. Again, it's bleeding money and this is a down economy - and I predict it'll be getting worse. Whether I hit my targets by Oct 5 or not, it's cool. If I do hit them, I'll look to sell around 18 in 2 to 3 years (though it may well be a bumpy 3 years).
In the end I like it enough to roll, do your own due diligence and post your thoughts here.
Update: I'm a cheap fuck. 7/28 - $9.15 after posting 62% profit gain vs expected loss. I'm keeping my other bids out, and considering adding another 1/6th when the price settles a bit (volume is way down).
Update2:This stock might be cheap after their CEO announced his resignation and a failure to meet Q4 expectations it sits at 8.21 as of this writing (11/16/2010), I still like this company, but with downward pressure the way it is I still like a sub $7 price point. I'm sure in mid to late 2011 it has a high chance of breaking out when sales of it's 100 GB optical switches go live, but I can wait until the December sell off for that. Still keep this one on your radar.
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