BigBand Networks Inc. (NASDAQ:BBND) has been a long and hard ride into Uglyville. This company came public as a "Hot IPO" earlier this year and it was a hot potato. But hot potatoes cool quickly, and they cool really fast when you break them apart and expose them. The company has severely cut revenues forecasts of an original $54 to $58 million down to a new range of $35 to $39 million. It’s also going to have a loss.
You can read the company’s excuses if you want, but it doesn’t really matter. The company has lost all forms of credibility and is going to be turned on by its underwriters for making them look so bad after a premium pricing. Having great products doesn’t cut it sometimes when you are competing against power-house companies because they offer full end-to-end solutions and can undercut you simply for the sake of doing it.
The analysts at the underwriters started this with positive ratings back in April. Now they are covering a firm called "The One Man Band." This looks absolutely shameful.
- BigBand was ugly and on lows even this summer…so this is even worse.
- So much for having a premium pricing on hype.
- Akamai (NASDAQ:AKAM) also hit recent lows today, and we’ve noted how it is mysteriously bad times for multimedia carriers and th tech around it.
Jon C. Ogg
September 27, 2007
Jon Ogg can be reached at firstname.lastname@example.org; he produces the Special Situation Investing Newsletter and does not own securities in the companies he covers.