Followers | 14 |
Posts | 909 |
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Alias Born | 09/29/2016 |
Thursday, September 29, 2016 4:34:34 PM
Overview
- Stock's down almost 50% YoY - hasn't been trading this low since Aug, 2014.
- Recent decline due to Management's weak Q3 earnings guidance on 7/28 - citing weakening demand in North America and Europe
- Following guidance, stock was downgraded by J.P. Morgan, Nomura, B. Riley & Co. and Raymond James.
INFN is at its bottom
- Weak growth is a timing issue (new product launch is late by 6 months) not a structural problem with the business.
- Q3 will be the low point for revenue. Q4 will be marginally better and the growth starts to pick up in Q1 '17
- Prior to headwinds, revenue had grown +20% the last 3 fiscal years and broke into +10% EBITDA margins this last year.
- Infinera is pushing their (proprietary) technology into new markets that are huge (metro aggregation), or young markets that are growing rapidly (60%+ GAGR) and are forecast to do so for several years (small form factor data centre interconnect).
- Significant insider buying in the open market validates upside.
Valuation
- INFN ltm and fwd EBITDA multiples are trading below its peer group: chart
- The stock current market valuation implies 0% growth (not even inflation)
- Using a highly conservative growth forecast (nowhere near historical levels) - the stock still should be trading closer to $11 based on a future cash flows. My DCF analysis: link
Due to reasons mentioned above, seems like a great entry point that could easily achieve 20-40% gains.
Love to hear what everyone thinks...
Recent INFN News
- Infinera Provides Update on the Expected Filing of its Fiscal 2023 Form 10-K • GlobeNewswire Inc. • 05/06/2024 12:00:19 PM
- Infinera GX Series Powers Paratus Superhighway Network Between Johannesburg and Europe • GlobeNewswire Inc. • 04/18/2024 12:00:00 PM
- Aire Networks Deploys Infinera’s ICE-X Intelligent Coherent Pluggable Solution to Increase Capacity of Its Single-fiber Network • GlobeNewswire Inc. • 04/08/2024 12:00:00 PM
- Infinera to Showcase Advances in Optical Networking Solutions at OFC 2024 • GlobeNewswire Inc. • 03/20/2024 12:00:00 PM
- Infinera and Orange International Network Establish Long-term Partnership to Optimize Network Infrastructure Across Europe • GlobeNewswire Inc. • 03/18/2024 12:00:00 PM
- Infinera Corporation Announces Notification of Delinquency with Nasdaq • GlobeNewswire Inc. • 03/15/2024 08:30:00 PM
- Infinera Announces New Line of High-performance 1.6 Tb/s Optics to Reduce Power per Bit by up to 75% for AI-driven Intra-Data Center Connectivity Applications • GlobeNewswire Inc. • 03/14/2024 08:30:00 PM
- Australia’s NBN Selects Infinera’s GX Series Platform and ICE-X Intelligent Coherent Pluggables to Upgrade National Broadband Network • GlobeNewswire Inc. • 03/14/2024 12:00:00 PM
- DriveNets and Infinera Complete Joint Solution Certification of Infinera ZR/ZR+ Optical Modules with DriveNets Network Cloud • PR Newswire (US) • 03/13/2024 11:00:00 AM
- DriveNets and Infinera Complete Joint Solution Certification of Infinera ZR/ZR+ Optical Modules with DriveNets Network Cloud • PR Newswire (US) • 03/13/2024 11:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 12:36:43 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 12:36:29 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 12:36:14 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 12:36:02 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 12:35:49 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 12:35:37 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/06/2024 09:04:43 PM
- Infinera Corporation Announces Preliminary Unaudited Fourth Quarter 2023 Financial Results • GlobeNewswire Inc. • 03/06/2024 09:03:00 PM
- Infinera Announces Availability of Next Generation Multi-haul Optical Line System Functionality for Industry-leading GX Series Platform • GlobeNewswire Inc. • 03/06/2024 01:00:00 PM
- U.S. Stock Futures Gain Ahead of Economic Insights; Oil Prices Climb • IH Market News • 03/06/2024 11:02:03 AM
- Infinera’s Award-winning Optical Networking Solutions Recognized and Honored by 2024 Lightwave Innovation Reviews • GlobeNewswire Inc. • 03/04/2024 01:00:00 PM
- Form NT 10-K - Notification of inability to timely file Form 10-K 405, 10-K, 10-KSB 405, 10-KSB, 10-KT, or 10-KT405 • Edgar (US Regulatory) • 02/29/2024 09:37:23 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/29/2024 09:33:15 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 02/29/2024 09:28:48 PM
- Form 10-Q/A - Quarterly report [Sections 13 or 15(d)]: [Amend] • Edgar (US Regulatory) • 02/29/2024 09:17:55 PM
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