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Stockchase Opinions

Robert McWhirterViavi SolutionsVIAVCOMMENTMay 31, 2011

Huge opportunity for them in the optical space. 17X PE against June/12. Pretty crisp earnings growth with $0.77 growing to $1.14. Could be a pretty reasonable investment over a 2 year period.
$20.19

Stock price when the opinion was issued

$53.46

As of Jun 12, 2026. Market Open.

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BUY ON WEAKNESS

It's expensive, but is in a hot space. Let the stock cool a little before buying.

COMMENT
BUY

Fiber demand is increasing. Is a past Canadian darling. Earnings are dramatically improving. 35% forecast earnings growth next year.

WATCH
Technology space is on his radar screen. You might consider buying a basket of them through an ETF. On this one, until it breaks below $15, he wouldn't worry about it.
DON'T BUY
Pulled back with all the optical networking companies. This one seems to be trying to find a floor. He exited all his exposure in this area.
DON'T BUY
In the bottom 15% to 20% of his database. PE is 19X’s. ROE is forecast at a modest 6%. Most recent earnings were down 41% compared to the same quarter of the previous year. Forecast to lose $.03 in the coming quarter.
COMMENT
More interesting to him now than any time since 1997. Still expensive for him.
COMMENT
Has come down a long ways in the recent drop off would make it more interesting again. This one came up on his filter recently, but it wasn't attractive enough given the 10-year trading range. Once he discovers a stock, he doesn't invest in it for at least six months, often 3, 4, 5 years. He might take another look at this next week.
DON'T BUY
Technology over the last 3 months has been lagging the market. Seasonally, it is coming to a time when things should get better, but this one is not a leader in the group.
COMMENT
Been in a downtrend and now seems to be forming a base. If there is some space between where the relative support is and where the downtrend line intersects, there may be opportunity for short-term trade. If it breaks the downtrend line with some good volume, it may be setting up for a new base building.
COMMENT
Ranks below half in his database. Just announced an acquisition. Pretty good technology. Looks like the optical drought on fibre-optic sales is behind us. Very highly priced with a 54 P/E.
DON'T BUY
There are higher quality businesses at better values. Too expensive.
SELL
Their business is not going to grow. A lot of outstanding stock.
DON'T BUY
SBC Communications and Verizon were going to try to expand and compete with larger telcos and cables. JDS would be a direct beneficiary of this. Competition in this area is quite vicious, so not sure how far they will get. JDS is having a struggle. Not a fan of this area.