TC,
Maybe, but CIEN has a valuation greater than most, with a P/E of 380. Broken long term trendline, bad earnings news looming 12/7, still a lot of institutional ownership, less than 5% of the float held short (about 1 day's trading volume), topping pattern with a professional gap down on the failure, now in a clear downtrend, trading below all its moving averages, and looking like it will fail the overhead test at the 200 day moving average (despite the technical buy signals):
askresearch.com
If CIEN fails this overhead test, it will slice through support at 70 like a hot knife through butter. Next support about 50, then 40, then 32. At a price of 32, CIEN would still have a P/E of 158.
While I consider RIMM to be a better short, still my take is that CIEN is an excellent short also, with more potential downside than most.
Regards,
WS |
