Infinera Corp. (NASDAQ:INFN)

CAPS Rating: 5 out of 5

The Company offers a complete solution for deploying infinera digital optical networks.


Player Avatar OceanJackson (63.92) Submitted: 8/8/2013 10:56:41 PM : Outperform Start Price: $8.25 INFN Score: -37.64

The new Telco cycle is upon us. 100g, optical, OTN, convergence, meshed architectures, massive bandwidth demand increases, a simplification and cost reduction of Network Infrastructure, while at the same time, making networks much more powerful, and intelligent. That's what spending is going towards, right now, and Infinera is beautifully positioned to meet these needs with the leading Optical gear and PIC's.

They are the market leader in 100g optical. They have won industry wide acclaim for their technology. Fundamentals are currently strong, and strengthening over the last 3 quarters. DTN-X footprint expanding rapidly. Good international growth, winning Tier 1 clients across the globe. Money managers adding to their INFN positions recently. Analysts with a net buy rating and higher price targets. Industry competitors showing strong results across the board, confirming & echoing the cycle. Industry research groups demonstrating increasing carrier spending and projecting big growth through 2018. Stronger financials than immediate competitors ALU & CIEN. A niche telco vendor in the right place, at the right time. A decently strong buyout candidate - once they get any nibbles from the likes of Verizon or AT&T. And btw, the ongoing R&D work they're doing with Verizon, and public appearances with VZN bode well.

Infinera is the highest rated Information Technology stock here on the Fool. Sort the stocks in CAPS by number of total votes, take the percentage of Outperform calls on the list, now rank it - Infinera is the 19th most bullish stock overall in CAPS, and the #1 Information Technology company.

Simply stated, with Infinera we have a thoroughbred champion racehorse, that only a major macro level economic disaster that takes down the recovering economy, and plunges us back into a deep recession or depression, can stop. If you bet against INFN, you're betting on an unforeseen disaster striking. I'll take my odds and go long on INFN.

After 6 years of disappointment in the stock market, with an IPO that makes Facebook's look great, Infinera's time, with the new cycle, and being positioned at the top, in the perfect place at the beginning of it, makes them a great pick to outperform for years to come.

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