Ciena Corp (NASDAQ:CIEN)

1.4 billion in long-term debt. Losing hundreds of millions in free cash flow. Whats not to like?

TONS AND TONS of debt! They don't know how to make a profit.

Ciena has the best high-speed optical technology. The purchase of Nortel's optical business caused problems for 2011, but 2012 will be a banner year. The stock is now 40% down from its high point, so it's a great bargain.

My Own Stock

It's time for networks to keep up with PC, Tablets, Smartphones, and video data. I feel we're so behind that we are going to have an explosive growth in networking technology.

improving income with return of tech to prominence

short squeeze ahoy

The valuation's just plain crazy on this one. No FCF at all, and even if you buy the GAAP numbers, the company's selling for 21x earnings that might (or might not) happen two years from now -- all on a 15% growth rate. Pass.

http://www.fool.com/investing/general/2011/02/01/this-just-in-upgrades-and-downgrades.aspx

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Smartphones will continue to grow. Ciena provides the infrastructure necessary.

CEO Gary Smith intends to build on his newfound economies of scale to "capitalize on future growth opportunities and improve operating leverage." In plain English, that means improving sales growth and stronger margins ahead -- assuming the company keeps executing according to plan.

Will Ciena squeeze new synergies out of its Nortel assets to keep rewarding shareholders in 2011? It looks that way to me.

Short interest: 31% of float

High P/B, P/S, Debt to Equity, Beneish (Last 8 quarters)
Low Piotroski F-Score, Altman Z-Score

The internet has much growth ahead in the developing world

Come on, this stock was at 12.74 9 months ago! BUY BUY BUY

Internet video traffic will demand company's services and products.

Time for a turnaround

Tech play. Tech is back, and this is one of the better communications equipment makers out there. One trick pony though, but may be a takeover target for someone.

Having spent 30+ years working for a very large telco I can attest to the fact that a paradigm shift in telephony is occuring today. As subscribers abandon their copper fed home telephone service in favor of cell phones, the remaining pipe to that home is DSL. Those DSL connections are rapidly being converted to naked DSL, that is a DSL pipe that does not require an associated telephone number on the copper cable pair. The "new" naked DSL is then able to carry internet based telephone numbers. On the cell phone end of the buisness, Increased reliability is driving the cell phone carriers to to abandon copper fed T1 lines to their towers in favor of fiber. These defections of copper to fiber sets up the final financial incentive resulting from the shift; cable mining. That abandoned copper in the ground is worth money. The telcos are scrapping it as quickly as possible to convert it to cash. All of this works in Cienna's benefit as a vendor of choice providing routers to the telcos. (Disclosure: long T, VZ and Q.)