JDS Uniphase Corp (NASDAQ:JDSU) not in a good phase

Posted by Chris Bell August 19, 2013 0 Comment 876 views

JDS Uniphase Corp (NASDAQ:JDSU) stocks dipped sharply for the 2nd consecutive day on Thursday even as August threatened to be a dismal month for the equity market. However, the stock picked up 1.56% on Friday, opened up at a price of $13.66, climbed to an intraday high of $13.94 and dipped to a close of $13.66. More than 28.24 million shares were traded in Friday’s trading session while the average volume of shares traded over a 30 day period stood at 5.01 million. The company has a market cap of $3.23 billion.

Impacting actors

Some of the selling that took place towards the end of last week can be attributed to the fears that the Feds easing will be discontinued. The increasing violence in Egypt has also shaken-up the investment space. The S&P index shed 24 points or 1.4% and closed at 1,661. JDSU operates in the communications devices market as well and investors tend to grade it against CSCO as the latter is a bellwether for the future business in this industry.

The size difference

Despite the fact that the 2 companies are similar, by market cap, JDSU is only about 1/40th that of CSCO. This makes it more susceptible to any movements in the economy. For example, the job cuts that the latter announced last week will amount to 80 percent of JDSU’s workforce. Micron is another company that has not gone unscathed. It too dipped 0.88% in Friday’s trading. The chipmaker was downgraded by R.W Baird post some supply-chain research in Asia.

The company

JDS Uniphase Corp (NASDAQ:JDSU) provides communication measurement and test solutions as well as optical products to wireless operators, telecommunication providers,, network equipment manufacturers and cable operators. The company also provides optical solutions for biomedical, gesture recognition, semiconductor processing, environmental instrumentation, display systems, brand authentication and custom-color differentiation applications.

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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