This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Make Sure JDSU's Promise Has Right Fit

This column was originally published on RealMoney on Nov. 28 at 12:11 p.m. EST. It's being republished as a bonus for readers.

If I told you that I had the best single anticounterfeit play to stop the rampant pirating in China, you'd buy it in a heartbeat. If I told you that I knew a laser company that wasn't at its 52-week high, even though it is a precision, non-industrial laser company with great growth potential, you'd leap at it. If I told you I had a pigment company working on photovoltaic properties that allow you to have everything from a soccer ball that glows in the dark to a tamper-proof $20 bill, you would say, "Let me take that sucker right now."

But what if I told you the play was buried within a company and that it was, at best, 25% of the company's prospects? What if I told you the rest of the company was a parts supplier to Lucent (LU), Cisco (CSCO - Get Report), Nortel (NT), Verizon (VZ - Get Report) and BellSouth (BLS)? What would you do with a company that could get squeezed by Cisco in order for Cisco to make enough money selling equipment to SBC (SBC)? And how would you react if I told you that this company has its hands full with competition from Agilent (A - Get Report), the great test and measurement player?

You'd probably say, "Get me to stock loan; can I borrow some shares to sell it short?"

That's how I felt after meeting with some of the new management team from JDSU (JDSU). Actually, "new management team" is an understatement. This company is a vastly different enterprise from the hydra-headed, shotgun-wedded piece of junk that was JDSU under that guy with the beret.

This is a company that has spent the last two years in deep purgatory, under the radar, attempting to salvage itself, to reposition itself, to reduce cost and yet still have a business. Because of the cash hoard it has -- remember, JDSU financed itself at its high, so it is like a dot-com that socked away money and didn't bleed it -- it has been able to buy some companies and to sell and close a lot of others.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JDSU $5.88 1.55%
A $35.36 1.60%
CMCSA $58.22 -2.00%
CIEN $17.78 0.65%
CSCO $22.65 -1.20%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs