Two days a rally does not make but...
JNPR is going up, not down. I like my technical indicators, as mentioned, better than yours. Whenever you have a sinking stock pricing on smaller than usual volume, over a period of days, which JNPR suffered last week and week before, then you have an explosion of volume -- that's classic capitulation. Especially when you have 2 consecutive days of high volume...Buyers come in, a base is formed, the stock begins moving up. Classic and typical. We just saw this occur.
Plus, JNPR has got excellent fundamentals in terms of products and winning accounts. This tid bit from Market Watch, as of today:
"Juniper Networks also is a stock to watch, said Badgley Phelps & Bell's DeRosa, who is anticipating that Juniper will gain market share against Cisco."
I think JNPR will easily be at $28.00 share shortly after their earnings announcment. By mid-February, low 30's...and a new base there. Juniper should have no earnings disappoints for this quarter. The only worry I have is Qwest's reduced cap ex spending for 2002 and forward guidance from JNPR. But to offset that, JNPR is gaining new business and with Pacific Silicon purchase, is broadening it's suite of products and especially in high margin and lucrative areas. They will steal share from CSCO big time with the MSO's at the cable head end. CSCO will hate this. They've owned this space and are now about to lose a lot of it to JNPR.
If shorts get squeezed, the stock could pop sooner. I would be very careful of shorting this one and if I did, I would set stops tight. |
