Stockchase Opinions

Robert McWhirter Viavi Solutions VIAV-Q DON'T BUY Mar 11, 2009

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.
$2.600

Stock price when the opinion was issued

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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.
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
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.
COMMENT
More interesting to him now than any time since 1997. Still expensive for him.
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.
COMMENT
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.
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.
BUY

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

COMMENT