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Technology Stocks : SDLI - JDSU transition -- Ignore unavailable to you. Want to Upgrade?

To: techanalyst1 who wrote (3090)	3/6/2002 8:35:20 AM
From: John Carragher	Read Replies (1) \| Respond to of 3294

JDS Uniphase, Other Telecom Equipment Stocks Bounce Up DOW JONES NEWSWIRES By Johnathan Burns Of DOW JONES NEWSWIRES NEW YORK -- Shares of optical component maker JDS Uniphase Corp. (JDSU) surged Tuesday for a second straight day in heavy trading as value investors scooped up the stock near its 52-week low - a strategy employed in pockets throughout the telecommunications equipment sector. Shares of Avaya Inc. (AV) recently traded up more than 10%, or 55 cents, to $5.83 in furious trading. Shares of optical systems maker Ciena Corp. (CIEN) were up more than 6% while merger partner ONI Systems Corp. (ONIS) were up a similar amount. "There really is no news out there that's moving these stocks," said one trader. "Just a lot of people are realizing there are good deals out there and it might be a good time to get back in, if not for the near-term, for the long-term." Shares of optical systems makers Tellium Inc. (TELM) were recently up 7%, while Sonus Networks Inc. (SONS) shares were up 4%. Component maker New Focus Inc. (NUFO) traded up 6.3%. JDS Uniphase, which set a low of $4.74 Feb. 22, recently traded up 8.8%, or 51 cents, to $6.28 with volume near 46 million shares compared to the daily average of 31.4 million. The stock was one of the most heavily traded issues on the Nasdaq Tuesday following a 15.9% hike Monday. JDS Uniphase officials have been yet unable to call a bottom to quarterly revenue declines resulting from a recession in telecommunications equipment spending. They have said that sales may fluctuate from the level the company reaches in the ongoing fiscal third quarter - projected to drop 10% to 15% sequentially. In the fiscal second quarter, JDS Uniphase lost $2.13 a share on revenue of $286.1 million. But it is clear that some investors are beginning to believe the worst of the news in the sector is already priced into stocks. In addition, many believe that component makers like JDS Uniphase would be among the first to benefit from any increases in spending. "With the optical components companies having reported their December quarter results, it seems clear to us that the data indicate we are either at, or very near, the bottom," UBS Warburg optical component analyst Joseph Wolf said in a recent note. "As for recovery catalysts, we maintain our belief that carriers will continue to add incremental capacity to meet demand for bandwidth, which would first benefit line card components (transmitters, receivers, transceivers) and then, as additional wavelengths are added, optical components makers across the board." . -By Johnathan Burns,Dow Jones Newswires, 201-938-2020 johnathan.burns@dowjones.com Updated March 5, 2002 2:55 p.m. EST