Benj Gallander
Viavi Solutions
VIAV-Q
COMMENT
May 18, 2007
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.
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.
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.
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.
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.
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.