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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (23988)	10/26/2006 1:14:33 AM
From: John Vosilla	Respond to of 24042

'JDS Uniphase: JDSU guided to $312-$328 million in FY1Q sales. Our $326.3 million estimate is above consensus, which stands at $321.6. Our estimate is based on checks into the Optical business, which suggest another strong quarter of demand with continued capacity constraints, combined with management’s comments around the reverse stock split that it would only implement the reverse if it saw continuing EBITDA improvement. In our view, the fact the company did the reverse implies that revenues should at least be within the top half of the guidance range. Our EPS forecast of $0.02 for the quarter compares to consensus at $0.01. We note that if JDSU does produce an EPS profit for the quarter this will be the first EPS profit in five years at the company. We expect the December quarter to mark the first positive operating margin in over 5 years at JDSU. Given the pullback JDSU shares have seen in the past week following the reverse stock split we view the stock as attractively valued and recommend buying the shares aggressively in front of the FY1Q earnings report. Consistent with our investment thesis on the stock, we are looking for an upturn in global carrier triple play spending in 1H CY 2007 to drive outperformance in financial results and expect more or less inline results before that in CY 2H 2006.' One thing I see as a big positive in trying to be the ultimate contrarian is so little interest in it these days on SI for what might have been the poster child for the internet revolution phase one.. Seems most longs have ben washed out by now. I also notice Lucent's report was not too shabby either and the market did love it..Amazing how markets work.. everyone loved these things during the mania. Lately it was all about Google and housing yet survivors that build the next generation infrastructure like a JSDU or CSCO seem to have the building blocks in place for the next phase of growth.