May. 5 at 3:32 PM
$CCOI 50% of my portfolio is in Cogent. I'm certainly not selling even though this was a particularly bad earnings report (i did not anticipate the capex being so high)
Market is starting to get concerned about chptr 9. I am not. They are about to announce 10 data center sales which will allow them to refinance debt to probably 2032 (with another 13 data centers to possibly be sold). So, they until then to execute on wavelengths.
There is not competition for wavelengths (companies use redundancies, so they WILL use Cogent since it will be the cheapest option for the foreseeable future). Their enemy at this point is equipment constraints (customer's equipment) Nokia, Ciena, Lumentum...these stocks are flying being their products can't keep up with demand. Long term, this is bullish for CCOI (demand for connectivity), short term it is very painful.
