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