Elliott Management's Juniper Presentation

Financial engineering clouds the fact that it's a crowded industry. There's nothing worse than this: "By refocusing and eliminating distractions, Juniper can look to regain the 6 points of market share in edge routers it has lost since 2005." If it was only that easy...

I just can't imagine cutting pay being the way to double digit returns. The market for software engineers is too mobile. Furthermore, they don't consider the fact that co. might have to spend high R&D to maintain its current market position.

My $.02 while I eat dinner.

It's interesting to see they didn't do buybacks even as the stock went so low for so long. Juniper didn't need Elliott or anybody else for that or for any cost cuts a.k.a. "realignments". Everybody knows that large and mid caps went crazy last year with buybacks. Median peer group div. payout ratio of 2.5%: Ok, it's hardware and mature.

M&A track record above 100 pct. of EV not necessary evil as portrayed here.

Also, service provider core router market peers analysis is incomplete /not shown, because peers have also lost market share.

The ~ 67% upside story told here to be taken with a grain of salt. Lesson: if you're not going to pay a div. when you can you're bound to sink the ship.

I really like these decks. If I had the time, I would really like creating ones for each company my fund has a position in. Or the larger ones.

What do you think of their valuation analysis? Does it make sense?