As Good As It Gets
Ciena's stellar performance raises the bar a few notches.
Now that the quarterly results have begun to sink in, and the earnings and stock split euphoria tempered a bit, the real excitement is about to commence.
Ciena has just completed a classic "cup & handle" chart formation which is extremely bullish, and bodes well for stock performance over the near term. With favorable market conditions which we now appear have for the next few days, the prospects for a dramatic upside move are excellent. The fundamental and technical groundwork has been laid. There is no other pure play optical networking company out there with anything close to Ciena's attractive relative valuation. Analyst upgrades and price target upward revisions add further fuel to the Ciena blaze.
Ciena will most likely break out to new record closing highs and continue to surge into the 220 range as short sellers head for cover, institutions continue to load up, and late-to-the-party investors buy in. Yesterday's action depleted the overhead supply from weak hands, ie shares of those investors who bought in at the previous top and just wanted to get out and break even.
It has been a long wait. But, the investment return for those of us who believed in this company are now receiving their reward for patience, diligence, and attention to details that really matter.
Thank you Ciena for an outstanding rise from the ashes.
It's been a helluva ride. Nobody has done it better. I'm standing pat for the next 10X.
Jack Hutchison
PS: Investors Business Daily features Ciena on the front page, and Nasdaq Stocks in the News. Ciena has finally arrived. |
