Ashoka India Equity Inve... Share Discussion Threads

[picobird] 07/10/2014 18:49

Geraldp. Give your brain some exercise & find it yourself, in other words DYOR.
Talk about punters who can't tell their A from their E, you certainly are one.
Clue, look up,the Xceed acquisition write up.



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[picobird] 07/10/2014 17:49

Anite have bought Xceed. Xceed cover the same areas that Spirent have bought into Dax & Radvision. We are talking in technology terms of big data synaptics, volte testing tools, network automatic testing troubleshooting & solutions - everything that is needed in Lte roll outs basically. Other goodies as well.
Anite are strong in China ( about to get stronger with their newly acquired toolset) which is down to handset testing. Spirent are not really into handset testing any longer ( in effect).
Spirent have blown themselves out of the water. They lost out with developing Lte testing, now after spending out for the above tech areas, Anite have taken the U.S. customers. Combine that with the other problems that Spirent have got & we have a sinking ship. The other problems I have mentioned in an earlier post.
Don't want to rub it in but you have to take time to understand these different technologies to see the full picture. That's way we get posters on this tread talking figures & share price movements & general BS who are totally blinkered to be polite about it.

[rathlindri] 07/10/2014 16:45

Thanks for copy of the Spirent article pico. It says trading conditions in US and China have "softened" thus this looks like an industry sector issue to me. I see no mention of Xceed or it's link to Anite....just my take on it, obviously you see it differently.

[picobird] 07/10/2014 15:00

I have had to paste the article above your post rathlindri (computer problems)

If you read it take note that they say that the Spirent capex spend had been made in areas where they are trying to win new customers & that is the problem area where the demand had dried up, among other problem areas.

Note that Xceed have 90% of US operators using their products. So Anite have picked up on those customers & Spirent have been left with egg on their face.
SPT also overpaid for the capex.

(To read the full article put in your email address or just google it.)

[rathlindri] 07/10/2014 14:30

pico, have you any actual evidence to back up that statement or is that just conjecture on your part (genuinely interested to know)

[picobird] 07/10/2014 14:20

On reflection what Spirent has indirectly said in the RNS, is that Anite has taken the customers which they had paid out in acquisitions to try to attract.
Xceed, have 90% of the U.S. market operators in the 'big data synaptics' area.
In other words they have had the rug pulled out from beneath their feet.
That Anite acquisition contains other goodies as well - pretty darn good eh.

[rathlindri] 07/10/2014 14:06

Looks like it was a shrewd move on your part Salpara111

[nomdeplume] 07/10/2014 11:28

Salpara111, "Boy am I glad I bailed out of here at 90 a good while back.Not sure what the future is for AIE but I would no longer consider re-entering at 75." I have a simple question, why? And if you can't answer that one, at what point would you consider re-entering?

[picobird] 07/10/2014 10:09

Spirent has a problem customer with AT & T. AT & T have put the squeeze on all their creditors order wise after spending $50 billion on an acquisition.
Spirent have experienced the same softness in the US market which Anite referred to in Q1. Anite have since experienced an upturn in that market going into Q2.
So Anite is going from strength to strength, their handset business continues to experience strong ongoing demand from the Asia Pacific region which includes China ( always did well at geography at school, LOL)
The Xceed acquisition was basically 'fantastic'.
Spirent do have problems with Cisco as well. They also have internal problems with the BOD which include two women & all of them are basically accountants running a tech firm.
I know you think that I am biased but the fact is Anite is a more than an okay business. Spirent is more reliant on applications & networks compared to Anite.
The news today is old news plus specific news to Spirent only, so 'don't panic Mr Mainwaring'. 2015 is going to be a good year for Anite & it's a good time to top up.

I forgot to mention that Spirents biggest handset testing customer - Nokia has been in decline since MS started to interfere in it's business. Nokia is also closing down it's India plant it has been announced today.

Samsung aims to get out of the laptop business. That is an interesting development but with tablets becoming more powerful together with 'Cloud applications' there would appear to be a shift away from traditional computing at least with Samsung.

Cisco is playing 'catch up' with it's product range especially video conferencing. The question is 'can Spirent cope'.

Spirent shares probably have further to fall, they seem to be on the decline as some brokers have already noted with 'sell' recommendations.

[salpara111] 07/10/2014 10:08

Boy am I glad I bailed out of here at 90 a good while back.
Not sure what the future is for AIE but I would no longer consider re-entering at 75.

[nomdeplume] 07/10/2014 09:51

Consider:

Is Anite a profitable company? - Yes;
Does it pay a dividend? - Yes, 2.2%;
Is the dividend cover adequate? - Yes, 2.17;
Is the P/E ratio reasonable? - Yes, ~20;
Does management appear sound? - Yes.

Now, with hindsight, I should have sold a month ago, but I didn't. So, given the above facts, what am I missing that means that I should sell now? As Muscles states, a profit warning drop without the profit warning!

[muscletrade] 07/10/2014 09:04

The Spirent comments on US network testing would appear to contradict the expectations announced by Anite just a few days ago in its acquisition of Xceed.

Would perhaps suggest either Anite has been sold a pup or Xceed has been taking business from Spirent????

I would hope that Anite would be looking hard at the figures before completion.

Having said that Anite share price has fallen approx 15% in the last 6 weeks or so....which sort of represents a profit warning drop, without the profit warning. Hmmmm

[rathlindri] 07/10/2014 09:03

Sorry to see you go werty5. Always good to hear your balanced comments...

[werty5] 07/10/2014 08:58

Buy not by it is early.

[werty5] 07/10/2014 08:57

Mbmiah you should listen to your own advice don't by more if the sector looks dodgy you are throwing good money after bad.

[werty5] 07/10/2014 08:54

Well gave it a fair crack thought things might improve after recent purchase but market does not agree right now. Time to say adios right now. Not even sure I will be back for the foreseeable things look like they might be going pear shaped again.

[mbmiah] 07/10/2014 08:28

Not looking good for this sector - hope for the best, buy more??

[irenekent] 07/10/2014 07:47

Spirent issues a profit warning this morning. I would like to think that it is because AIE is taking business from them, but it is more likely to be because of difficult conditions in US & China as they state. Not sure where this leaves us but as they say markets climb a wall of worry.

[rathlindri] 06/10/2014 22:29

Market up today, shock/horror, AIE is down (again), the plot thickens....

[picobird] 05/10/2014 06:07

Nice post above, well explained.

Press:


The acquisition not only pulls in more customers with a complete one stop offering but perhaps more importantly keeps our existing clients happy with an expanded tool set & troubleshooting facility.

[p1nkfish] 04/10/2014 13:51

don't think the money has been squandered, lower acquisition pricescalways welcome, but this rounds the network test side off nicely and offers cross selling opportunities.

network operators need these test capabilities to optimise their offerings at the lowest cost they can achieve.

[gerardp] 04/10/2014 13:07

This is heading towards sub 0.80 now. Fair value at 0.62 now that the cash has been squandered.

[p1nkfish] 04/10/2014 10:00

lack of market reaction is down to sentiment right now imho.
very little will get a positive reception.