JDSU trades at approx 20% discount to its peers, selling for approx 20 times 2013 earnings.
Customers have been drawing down their inventories of optical components since the beginning of 2011, Inventories are at their lowest levels in three years. Telecom must spend again
AT&T recently announced it would increase its capital expenditure budget.
Deutsche Telecom upped its capex budget
Verizon's has new initiatives
Softbank invested in Sprint so they have cash to upgrade their network
JDSU doesn't just sell optical components. Almost half their sales from test and measurement equipment for wireless and wire-line networks. This is a higher margin business than the optical side, Test and measurement correlates with North American carrier budget. When carriers spend money on their networks JDSU's test and measurement makes money. Also JDSU has new products to win share in the 4Glte wireless infrastructure market..
That's a few reasons why I feel JDSU will be $20 soon Martin.
Please tell me a few why you feel it will be $12 in May.
Your thoughts will be appreciated.
I hope mine were.
good reasons . imo market manipulation, jdsu usually hits a 52 week high . revisits the high and gets dumped to june . imo only that is what is happening .
the excess puts lowered ratings . telecom stocks overpriced ''cnbc talking heads'' i took my profit at 15 waiting to june for the over done sell off . sell in may has started imo only. time will tell ..hope i'm wrong on the sidelines for now ''past years when i stayed in i was dead in the water for 8 months .