InfinitiStocks issues a General Alert and a potential Short Cover Alert for JDS Uniphase Corp (Nasdaq: JDSU; TSX: JDU), a leading provider of communications test and measurement solutions and optical products for telecommunications services and network equipment manufacturers. On November 2, markedly improved Q1 results saw net revenue reach $318.1 million, with a sharply narrower GAAP loss of $17 million, or $(0.08) per share, versus a loss of $67 million $(0.34) a year ago. Non-GAAP EPS of $0.03 beat analyst estimates by $0.02. For the second quarter of 2007 (ending December 31), JDS expects higher net revenue of $332 - $352 million as internet and cable providers seek to increase optical fiber density and bandwidth. JDS financial results were impressive enough to cause Deutsche Securities to upgrade JDS from hold to buy on November 3, while Needham & Co raised its own rating from buy to strong buy. Analyst John Harmon increased his FY 2007 EPS estimate by a penny to $0.30, and his FY 2008 estimate by $0.05 to $0.85. With favorable recent views from analysts, InfinitiStocks believes JDS share prices may further benefit from a rapid bout of short covering. As of last month, a whopping 36.10% of the JDS float was reported sold short. The situation appears eerily similar to a call we made August 8 for CWTR, which saw its shares increase over 60% in just under two months. Like JDS, CWTR posted improved quarterly financial results and received two analyst upgrades at a time when the short position was in excess of 20%. InfinitiStocks further notes that JDSUD shares recently underwent a 1:8 reverse split October 16 - a substantial decrease in liquidity - that could make covering the large number of shares all the more difficult.
News 
Market Data 
Discover 
