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Steven Kiel
Steven Kiel
Articles (136)  | Author's Website |


February 03, 2011 | About:


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Rating: 3.8/5 (5 votes)


Hschacht - 6 years ago    Report SPAM
The more I've looked at TLAB, the more I like it.

$1.2 billion in net cash. An underlying operating business that is valued at only $800 million, yet it earned $200 million in the last 12 months.

If the company wasn't buried under a mountain cash , it would be more obvious to those who haven't adjusted the PE for the excess cash. Don't get me wrong, this is a first class problem. And it proves how little most investors look at a firm's balance sheet.

They are preoccupied with a penny miss in earnings. With Tellabs, that earnings number is pretty meaningless when viewed in the context of that balance sheet.

Oh, and how many people know that TLAB owns $200 million worth of CSCO shares?

This stock is ridiculously valued and I'm amazed that the "miss" from last quarter has preoccupied so many.

Let's hope management wakes up and does a special dividend, recap, or monster buyback. Their laissez-faire approach hasn't been very effective.

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