Gordon Reid Ciena CIEN-N PAST TOP PICK May 12, 2020

Stockchase Research Editor: Michael O'Reilly CIEN is an internet network solutions company that is well poised for the growth in 5G. Recently reported earnings of $0.52 per share beat analyst expectations by 15%. Less than 2/3 of revenue is derived in North America, providing global diversification. The company holds $1.3 billion in cash. Announcements by the Biden Administration to strengthen internet infrastructure will keep demand for their 5G applications growing. We would buy this with a stop loss at $39, looking to achieve $60 -- upside potential over 19%. Yield 0% (Analysts’ price target is $59.56)

(A Top Pick May 04/21, Up 18.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CIEN has achieved its $60 target. To be disciplined, we recommend covering 50% of the holding and trailing up the stop (from $39) to $51. If triggered, this would all but guarantee a minimum investment return over 9%.

(A Top Pick May 04/21, Up 0.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CIEN has triggered its stop at $51. We recommend covering the remaining position at this time. Combined with the previous recommendation to cover half the position, this results in a total net investment return of 9%.

Stockchase Research Editor: Michael O'Reilly With an order backlog reaching $4 billion, CIEN, a 5G, router, and switches infrastructure company is a TOP PICK. No doubt supply chain delays, including sourcing out of China has been an issue, but as things return to normal growth will rebound. The company trades at 17x earnings compared to peers at 34x. Management has revised down their guidance, so forward expectations will be tempered. We recommend setting a stop loss at $35, looking to achieve $74 -- upside potential over 57%. Yield 0% (Analysts’ price target is $73.71)

Stockchase Research Editor: Michael O'Reilly We reiterate CIEN, a 5G, router, and switches infrastructure company as a TOP PICK. No doubt supply chain delays, including sourcing out of China has been an issue, but the company has $4 billion in order backlogs. The company trades at 15x next year's earnings compared to peers at 34x. We recommend trailing up the stop loss (from $35) to $42, looking to achieve $72.50 -- upside potential over 42%. Yield 0% (Analysts’ price target is $72.35)

(A Top Pick Jul 28/22, Down 17.7%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with CIEN has triggered its stop at $42.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 13%, when combined with our previous entry recommendation.