I am interested in this holding of Saul’s (as of the end of May) but deterred by the short position over 17% (as of May 13) which presumably reflects the litigation with CSCO.
I wonder what the potential is for harm to the company. If serious, might the shorts be justified? Or if not serious, might a pleasant short squeeze be anticipated?
Insights on this welcome. (However, if already fully discussed here, would be grateful for the date/no. to head for. Thanks.)
The Cisco lawsuit shows how scared they are of ANET, and even if the lawsuit goes against them, by then ANET will have changed the API and worked around the other patent claims. The trend of Software Defined Networking is very real and won’t be stopped by giant sloths using the legal system instead of investing in the future. This trend will be yet another appendix entry in a future edition of “The Innovator’s Dilemma” in my opinion.
Cisco is scared of Arista, and rightfully so.
This is one of my highest conviction stocks. I’ve been selling Puts on dips to generate some cash or buy more at even lower prices.
Good post, I like this company too Smorg…opened my position in March.
My problem is that, always wary of value-traps, the short figure of 17.7% stays my hand. I infer it is either not so much apprehensive of the outcome as confident of a bad one, or thinks the price has run up too much, or sees an excess of competition, or all of the above.
On the watchlist for now. From the chart, $65 looks a better price than current to take the risk. If I miss it, as no doubt I will, good luck to you!
The Cisco lawsuit shows how scared they are of ANET
Maybe, but a company will tend to vigorously defend its patents and trademarks regardless of the potential impact of a competitor, otherwise they might relinquish some rights. The is particularly true of trademarks like “Kleenex” where they become synonymous with the generic product.
Anyway, thoughts and refernces on this board about the lawsuit match up with some other data I have found, which is there is not a ton of worry. A lot of it revolves around the command set used to control the device. ANET created one too much like Cisco, probably in hopes of making it easier to substitute the device without retraining you team (not cheap). Word is that they have changed it and will release a copyright free version, thus making the suit go away.
I just posted a thread on ANET and its growth fundamentals, so check that out too.