NASDAQ:TKLC
$14.60
(2/9 2:31PM)
+1.3%
| Open | $14.53 |
Mkt Cap | $970.3 Million |
| High | $14.62 |
52Wk High | $19.68 |
| Low | $14.29 |
52Wk Low | $11.25 |
| Volume | 273,207 |
Avg Vol 10D | 484,900 |
Ockham's Rating/Recommendation Summary
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TKLC Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, TKLC the high and low end of the Price to Sales per share ratios are 3.09x and 1.65x respectively.
Notice that TKLC's current Price to Sales per share ratio is 2.10x, which is somewhat below its historical weighted average by 12%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.
TKLC Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. TKLC is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for TKLC, the current level of Cash Earnings compared to its historical levels helps identify where TKLC is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 33.90 and a historical low Cash Earnings per share ratio of 18.36, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for TKLC? From the Ockham perspective, we are looking specifically at TKLC to see if the market is recognizing the huge disparity between TKLC's past stock price to Cash Earnings ratio to today's levels. At a difference of 47% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at TKLC. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
TKLC Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for TKLC to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard TKLC as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.
TKLC's Back in the News After More than a Month on Mad Money
It's been at least a month since we noticed any major news coverage of TKLC, so the story in Mad Money may get the ball rolling.
To beef up my 401(k). Can't get that from an episode of "seinfeld." they have cramer. When TEKELEC pulled back, I bought more shares. But it doesn't seem like the stock can find solid ground. Is this pupty sliding lower? Do you think there's upside in the near term? Thanks for all you do. I'm signing my book thursday night at 8:00, 92nd and y. Here's the deal. I don't ever, ever, ever care about the chart on a company like TEKELEC. It's a long-term guy bye as part of the internet tsunami. Every now and then the charlottes will look back. That's why I don't overplay the chart and I overplay the the long-term thesis is good. You stick with TEKELEC. And stick with "mad money."
“… When TEKELEC pulled back, I bought more shares. But it doesn't seem like the stock can find solid ground. Is this pupty sliding lower? …”
Tekelec (TKLC) Discussed on CNBC's Mad Money
Tekelec is in the news. Find out how this impacts TKLC trading on Ockham Research.
Really date myself. The street sees the moves in google, apple, research in motion, sees the moves in palm, in adc, of course now in starent, sees it in cisco and ciena and tellabs and TEKELEC and com scope and broadcom, net logic, exile inks, r micro. Cyprus semi, tessera tech, sandisk. Mobile internet index. They think these stocks are disparate, they have nothing to do with each other. They're not connecting the dots. What I see is a tsunami that's
“… prus semi, tessera tech, sandisk. Mobile internet index. They think these stocks are disparate, they have nothing to do with each other. They're not connecting the dots. What I see is a tsunami that's …”
Tekelec (TKLC) Discussed on CNBC's Mad Money
Tekelec is in the news. Find out how this impacts TKLC trading on Ockham Research.
Makes a starent-like so what could be the next starent? What could it be? Well, let's come up with two of I like TEKELEC and ciena. Two more telco equipment suppliers that haven't really moved yet, that are both natural acquisitions for juniper because they have some of the best assets out there for the mobile TEKELEC has the technology behind streamlined text messaging. Ciena helps wireless networks on bigger band wths, supports the video and data services that make the mobile internet these are two of the most unloved stocks out there.
“… ey have some of the best assets out there for the mobile TEKELEC has the technology behind streamlined text messaging. Ciena helps wireless networks on bigger band wths, supports the video and data services that make the mobile internet these are two of the most unloved stocks out there. …”
Tekelec (TKLC) Discussed on CNBC's Mad Money
Tekelec is in the news. Find out how this impacts TKLC trading on Ockham Research.
Severe outperformance. So money managers will put money to work there right now to boost those stocks and their winners those stocks and their win and ofof course the components of the mobile internet index. Need I remind you apple ciena, skyworks, abc telecom, com scope, TEKELEC. Here's the bottom line. If the economic fundamentals are a push, creating the yo-yo action, which I refuse to use again because I couldn't even do cat's cradle, then what happens? We default to the fundamentals of the money management business, which remains positive going into a fourth quarter with huge gains under our belt including the best quarter in just finished today. And of course we keep our portfolios diversified. Not to mention play "am I diversified" on this very show. Let's start with the calls. Let's go to amy in florida. >> caller: hey, jim. And a great big boo-yah. >> look at that sunshine boo-yah. You know how to play. The show with high energy. I say hallelujah. Hallelujah hit me. >> caller: i'm relatively new to stock investing and chart analysis, and you guys have helped me out extremely there at cnbc. I'd like to thank you. The whole network dz a very good very good job. >> caller: my question is on
“… lecom, com scope, TEKELEC. Here's the bottom line. If the economic fundamentals are a push, creating the yo-yo action, which I refuse to use again because I couldn't even do cat's cradle, then what happens? We default to the fundamentals of the money management business, which remains positive going into a fourth quarter with huge gains under our belt including the best quarter in just finished today. And of course we keep our portfolios diversified. Not to mention play "am I diversified" on this very show. Let's start with the calls. Let's go to amy in florida. >> caller: hey, jim. And a great big boo-yah. >> look at that sunshine boo-yah. You know how to play. The show with high energy. I say hallelujah. Hallelujah hit me. >> caller: i'm relatively new to stock investing and chart analysis, and you guys have helped me out extremely there at cnbc. I'd like to thank you. The whole network dz a very good very good job. >> caller: my question is on …”
Tekelec (TKLC) Discussed on CNBC's Mad Money
Tekelec is in the news. Find out how this impacts TKLC trading on Ockham Research.
Late '90s, when we recognized that the internet would be the next big thing. But this market will not connect I have to do it for you! Connecting the dots seems to we connect the them to tellabs last week, TEKELEC, onn semiconductor, the sky links slurks the xilinx which expected earnings this morning. Despite these huge wins no one else is putting these together. No one else is connecting the nobody is listening. This morning I googled the term "mobile internet tsunami" to see if anyone's listening. 20 listings popped up. 18 of them for me. And the others were mixtures of weather reports. Connecting the dots between the major multiyear trend and everything's piecemeal. I heard people say "mad money" moved att today. Please! The tsunami moved att! I heard somebody say apple's I this or that edition is that's what's behind apple. It's the sun mu. People accuse me of hyping palm before the deal getting short wrong. People have said rimm's up on a big squeeze. Repeat after me. That's why once again we're going to connect the dots for on august 11th I put together a
“… the xilinx which expected earnings this morning. Despite these huge wins no one else is putting these together. No one else is connecting the nobody is listening. This morning I googled the term "mobile internet tsunami" to see if anyone's listening. 20 listings popped up. 18 of them for me. And the others were mixtures of weather reports. Connecting the dots between the major multiyear trend and everything's piecemeal. I heard people say "mad money" moved att today. Please! The tsunami moved att! I heard somebody say apple's I this or that edition is that's what's behind apple. It's the sun mu. People accuse me of hyping palm before the deal getting short wrong. People have said rimm's up on a big squeeze. Repeat after me. That's why once again we're going to connect the dots for on august 11th I put together a …”
Tekelec (TKLC) Discussed on CNBC's Mad Money
Tekelec is in the news. Find out how this impacts TKLC trading on Ockham Research.
It's a taft hartley-like cooling off period. For a mobile internet play on texting and switching numbers that's got a ton of international exposure, that hasn't moved, unlike all the other stocks in the index put together, take a look at the take a look at TEKELEC. John in north carolina. John. >> caller: okay. Big jim, I want to give you a big barbecue boo-yah from eastern north carolina. I've got to tell you. One of the -- when I first started the show, someone sent me some barbecue just from that you are dead right. It topped even pierce's, which is from outside william and and it's darn good. Jim, my stock is tqnt. Triquint semiconductor. My background on that is about 2 1/2 months ago you mentioned
“… t TEKELEC. John in north carolina. John. >> caller: okay. Big jim, I want to give you a big barbecue boo-yah from eastern north carolina. I've got to tell you. One of the -- when I first started the show, someone sent me some barbecue just from that you are dead right. It topped even pierce's, which is from outside william and and it's darn good. Jim, my stock is tqnt. Triquint semiconductor. My background on that is about 2 1/2 months ago you mentioned …”
Tekelec (TKLC) Discussed on CNBC's Mad Money
Tekelec is in the news. Find out how this impacts TKLC trading on Ockham Research.
>>> for speculation friday I want to put a spotlight on the speculative tech stocks that have been left behind. I call them the forgotten tech actually, there's really only one of them. And the name is TEKELEC. TEKELEC. While the stocks in the mobile internet index I created on august 11th, that was a way to measure the smartphone revolution. They're up an average of over s&p's up about half of that. TEKELEC is flalt since I created the index. Flat. That's a travesty. By the way, the speculative stocks i've recommended since early may, they've done even better. They're up an average of 30%. That's leaving my new fave TEKELEC in the dust. It's an underperformer. But I think it has what it takes to become a 57 variety heinz catch-up play as in c-a-t-c-h. Catch-up. I like these speculative tech I really do. And as part of a feel bet on the guts of the mobile internet it's it's either smartphone components or wireless network equipment makers. In a field bet like I discussed in "jim cramer's real money: sane investing in an insane world." and I elaborate on in my new book kimming out next month "jim even:your personal economic recovery plan." you take a basket of stocks in an industry you think is going to roar. TEKELEC should be part of your mobile internet basket. Precisely because it's the stock that hasn't gone anywhere. Therefore, I regard it as undiscovered versus the rest. I think it has huge up side. The stock's massively undercovered by the brokerage only seven analysts follow it. Only one of them likes it enough I think that's nuts. Fundamentals i'm about to run down for this company. TEKELEC is a telco equipment for a particular kind of business that you and I both know, or if you have kids you know is red hot. Transmitting text messages. And also managing voice track on wireless networks. Technology also, this is another one for those of you who've ever switched carriers. It lets you keep your phone number when you switch carriers. Portability. 35 prs share. That's gigantic. These are all the things wireless providers have to buy in order to build out the mobile you know we've talked about how we just don't have the infrastructure to support so many smartphones, especially those bandwidth-hogging iphones. TEKELEC helps the carriers deal with that when it comes to text messaging and talking. Okay, maybe it's not as sexy as video. But it's still vital to the growth of modern wireless networks that can support the gigantic. In the u.S. Messaging traffic at at, verizon, and t-mobile was up up 80% over the previous year. With maybe a little under half of that coming from my kids. Don't you want to own the making texting possible? Okay, cramer, I hear you saying. If TEKELEC is so great, how come it stunk up -- why has it lagged all the other stocks you simple. TEKELEC got crushed from august 4th to august 6th after reporting earnings. The stock has yet to recover from that sell-off. It's more than a month ago. It sold off after reporting a 4-cent earnings beat. Expected. Delivered in-line guidance. But there was a flaw. A lot of the damage was caused by investors who had caught the run in TEKELEC from $11.30 to $19.64 and I think they were taking money off the table. Problems with the quarter? Even though demand in emerging markets has picked up, developed the ground like us. I'm not worried here. TEKELEC saw some signaling orders coming from companies like verizon. Att, that stock did well today. Bun begun to spend on the mobile internet buildout, which is why order trends to improve in the I believe TEKELEC. I think the real reason, frankly, for TEKELEC's pole-axing has to do with india, which has the fastest-growing wireless network in the world, something you might have had a hint of if you watched "slumdog millionaire." TEKELEC's business was supposed to launch nindia bit end of it didn't. By now it's expected to happened fingers crossed. As TEKELEC already does business with five of the top seven carriers in india and controls for local number portability, india should be gigantic for that's why I don't mind the I don't think delay matters. TEKELEC wasn't expecting local number port lilt in indbilt to hit its income statement anyway. The delay will not hurt numbers. I think this is the time. International opportunity still now picking up, TEKELEC is, yes, a speculative buy. There are ten more countries implementing local number portability in the next two years -- argentina, brazil, china, chile, ecuador, peru, russia, thailand, turkey. >> tall aboor! >> buy buy buy! >> on the text messaging side carriers are getting even more sprint coming out with the plan, unlimited e-mail access, texting, and gps navigation $70 I may have to switch to that. That's the lowest price yet. Sprint's desperate for business but the other carriers will likely so to follow suit and that means more business for TEKELEC's equipment. TEKELEC say $16 stock and has $4 in cash it has no debt. You back out the cash, 12 times earnings. There's not a whole lot lower the stock can go without starting to attract real buyers, so to speak. It can lek's expected to earn a dollar in 2010. I think that's conservative. I think you can go with $1.35. That would make 16 times earnings, the current multiple, get a $21 stock. But if it gets a higher more reasonable -- I could argue 20 $27 stock masquerading as a $16 that's maybe as much as a 68% remember, it's speculative here we go again. Small stock.
“… rnet index I created on august 11th, that was a way to measure the smartphone revolution. They're up an average of over s&p's up about half of that. TEKELEC is flalt since I created the index. Flat. That's a travesty. By the way, the speculative stocks i've recommended since early may, they've done even better. They're up an average of 30%. That's leaving my new fave TEKELEC in the dust. It's an underperformer. But I think it has what it takes to become a 57 variety heinz catch-up play as in c-a-t-c-h. Catch-up. I like these speculative tech I really do. And as part of a feel bet on the guts of the mobile internet it's it's either smartphone components or wireless network equipment makers. In a field bet like I discussed in "jim cramer's real money: sane investing in an insane world." and I elaborate on in my new book kimming out next month "jim even:your personal economic recovery plan." you take a basket of stocks in an industry you think is going to roar. TEKELEC should be part of your mobile internet basket. Precisely because it's the stock that hasn't gone anywhere. Therefore, I regard it as undiscovered versus the rest. I think it has huge up side. The stock's massively undercovered by the brokerage only seven analysts follow it. Only one of them likes it enough I think that's nuts. Fundamentals i'm about to run down for this company. TEKELEC is a telco equipment for a particular kind of business that you and I both know, or if you have kids you know is red hot. Transmitting text messages. And also managing voice track on wireless networks. Technology also, this is another one for those of you who've ever switched carriers. It lets you keep your phone number when you switch carriers. Portability. 35 prs share. That's gigantic. These are all the things wireless providers have to buy in order to build out the mobile you know we've talked about how we just don't have the infrastructure to support so many smartphones, especially those bandwidth-hogging iphones. TEKELEC helps the carriers deal with that when it comes to text messaging and talking. Okay, maybe it's not as sexy as video. But it's still vital to the growth of modern wireless networks that can support the gigantic. In the u.S. Messaging traffic at at, verizon, and t-mobile was up up 80% over the previous year. With maybe a little under half of that coming from my kids. Don't you want to own the making texting possible? Okay, cramer, I hear you saying. If TEKELEC is so great, how come it stunk up -- why has it lagged all the other stocks you simple. TEKELEC got crushed from august 4th to august 6th after reporting earnings. The stock has yet to recover from that sell-off. It's more than a month ago. It sold off after reporting a 4-cent earnings beat. Expected. Delivered in-line guidance. But there was a flaw. A lot of the damage was caused by investors who had caught the run in TEKELEC from $11.30 to $19.64 and I think they were taking money off the table. Problems with the quarter? Even though demand in emerging markets has picked up, developed the ground like us. I'm not worried here. TEKELEC saw some signaling orders coming from companies like verizon. Att, that stock did well today. Bun begun to spend on the mobile internet buildout, which is why order trends to improve in the I believe TEKELEC. I think the real reason, frankly, for TEKELEC's pole-axing has to do with india, which has the fastest-growing wireless network in the world, something you might have had a hint of if you watched "slumdog millionaire." TEKELEC's business was supposed to launch nindia bit end of it didn't. By now it's expected to happened fingers crossed. As TEKELEC already does business with five of the top seven carriers in india and controls for local number portability, india should be gigantic for that's why I don't mind the I don't think delay matters. TEKELEC wasn't expecting local number port lilt in indbilt to hit its income statement anyway. The delay will not hurt numbers. I think this is the time. International opportunity still now picking up, TEKELEC is, yes, a speculative buy. There are ten more countries implementing local number portability in the next two years -- argentina, brazil, china, chile, ecuador, peru, russia, thailand, turkey. >> tall aboor! >> buy buy buy! >> on the text messaging side carriers are getting even more sprint coming out with the plan, unlimited e-mail access, texting, and gps navigation $70 I may have to switch to that. That's the lowest price yet. Sprint's desperate for business but the other carriers will likely so to follow suit and that means more business for TEKELEC's equipment. TEKELEC say $16 stock and has $4 in cash it has no debt. You back out the cash, 12 times earnings. There's not a whole lot lower the stock can go without starting to attract real buyers, so to speak. It can lek's expected to earn a dollar in 2010. I think that's conservative. I think you can go with $1.35. That would make 16 times earnings, the current multiple, get a $21 stock. But if it gets a higher more reasonable -- I could argue 20 $27 stock masquerading as a $16 that's maybe as much as a 68% remember, it's speculative here we go again. Small stock. …”
Tekelec (TKLC) Discussed on CNBC's Mad Money
Tekelec is in the news. Find out how this impacts TKLC trading on Ockham Research.
Children other than through text you also need local number portability, industry gibberish for the technology that lets you keep your phone number when that changes networks. TEKELEC. TKLC. We've got to round out some you need a company that makes transmission equipment like antennas, rabbit ears, wireless base stations. I need you to look at comscope. I have it all written down here. You can just write it down. How about the components? We've had all the component ceos and if there are any that still want to come on we'll call them. Smartphones are just like any other gadget. They need semiconductors to and they're two big companies that make many different kinds of proprietary tips for the wireless markets.
“… ission equipment like antennas, rabbit ears, wireless base stations. I need you to look at comscope. I have it all written down here. You can just write it down. How about the components? We've had all the component ceos and if there are any that still want to come on we'll call them. Smartphones are just like any other gadget. They need semiconductors to and they're two big companies that make many different kinds of proprietary tips for the wireless markets. …”
Tekelec (TKLC) Discussed on CNBC's Mad Money
Tekelec is in the news. Find out how this impacts TKLC trading on Ockham Research.
That was a solemnic decision in >> caller: jimmy jay, big booyah to you. >> that's a vacation paradise. >> caller: got TKLC i'm looking >> we like it, we've liked this it's hot as a pistol. We don't back away. Not that we buy it up here, so i'm saying don't buy but it's a don't tell either.
“… 't buy but it's a don't tell either. …”
Tekelec (TKLC) Discussed on CNBC's Mad Money
Tekelec is in the news. Find out how this impacts TKLC trading on Ockham Research.
You're finally just being greedy if you don't take something off and if you missed the move, I do not want you to chase this. I would like you to ring the the other tech specs have done pretty well, too. TEKELEC, brocade, cadence, which I really want to mention right now as a buy. On semiconductor, serant networks. The five I recommended during the week of march 4th are up an
“… ention right now as a buy. On semiconductor, serant networks. The five I recommended during the week of march 4th are up an …”