Could it be that JDSU, VIAV, LITE as well as every other stock, commodity, etc. are nothing more than trading vehicles. It doesn't matter if they go up or down as long as you are positioned properly. And company fundamentals and the stock price are rarely in synch.
I agree on LITE. Let's see how it does later in the day. This pattern does happen with LITE. Low volume drop on no news.
I'm only interested in LITE from a trading standpoint. I don't think top level executive departures immediately after something like a company split is a good thing though.
It should be a really easy short then going into earnings. Do you really think the market is that easy?
All of what you say about their performance is probably true. What the stock price will do as a result is not so clear, however.
I actually agree with you. It's just the daily negative comments that gets old real fast. What we should be trying to do is figure out how to trade it in a market neutral manner. If it's going down, then sell and buy back cheaper. If it's going up, then try to time the bottom.
I don't think the insider selling is a big deal. What is a big deal, however, is how poorly LITE and VIAV are trading. I was expecting one to go up and the other down, so the total would still be about what the value was prior to the separation. I didn't expect both to go down. So, if my math is correct we're looking at a "JDSU" price of $9.84 as of today's close.
I agree! If it's so bad, just sell with the intention of buying back cheaper or sell and move on to something else.
On another note, what I am interested in is other's opinions on how this company split might play out. The market seems very indifferent to it for the most part. It had a few spikes (when it was first announced) and a couple of other times, but it hasn't been able to sustain any of the upward momentum.
Would a holder of JDSU stock one day wake up and now hold shares in each of the two new companies? I'm assuming that's how it would work. What if one of the companies spikes up and the other goes way down on that first day?
I'm in agreement that JDSU management isn't very inspiring, but I do think the sector itself accounts for most of the pain and suffering of longs.