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Thoughts On Sycamore Networks $SCMR

T11 Capital thoughts on Sycamore Networks (SCMR):

– SCMR announced the sale of a real estate asset that is the final step in the liquidation process for the company. Of course, the only reason we are invested in SCMR is because I don't believe the liquidation will reach completion with a distribution of what amounts to 33 cents per share in cash to investors. In the case of being completely incorrect in my analysis the downside versus our cost basis on the stock is 26%. This comes against upside that is exponential in nature.

To reiterate we have Lloyd Miller III who is one of the most prominent small-cap investors of the past twenty years involved. In addition we have Andrew Bellas who just left Tiger Global to start his own firm involved in the activist process to halt the liquidation in favor of a restructuring around the abundant tax benefits.

It is simply a waiting game at this point, the results of which should become evident during the first half of 2016.

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