CIEN - A buyout offer may be in the cards in the near future

[miguel007]

Over the past days we are hearing rumours about a possible buyout of Ciena. In fact, these rumors have increased significanlty and are taking into account the investors minds. Ciena's name has been several times mentioned out there as one of the possible targets of Cisco or even Juniper. I don't know the fundamentals of the information neither where they came, but it makes a lot of sense for me, because the price is now more attractive than ever. The stock dropped nearly 90% from its recent high, making it incredibly cheap on a P/E basis. The communications networking company remains well positioned in the market in two distinct areas of business, the video transmission and intelligent networking, where growth remains sustained by innovation . Honestly, I'm not quite sure if this deal will happen in the near future, but it's a fact that somebody believes the rumors because they are putting some serious cash down on their options bet, giving the impression that a buyout offer may be in the cards in the near future. Future short term earnings look bleak but the current price of stock is already taking this fact in consideration.

From a technical perspective :

Although the moving average still shows weakness as 50 day moving average is below 200 day moving average, positive momentum seems to be back as the stock is back above 50 day moving average. In addition MACD is also back above 0 indicating the stock is back in bull market.

Technical indicators .

(1) MACD above sell line - "buy" signal.
(2) +DMI crossed over -DMI indicating an "up" move.
(3) %K line cut up the %D line giving a "buy" signal.
(4) RSI is now in Bullish territory

 

[Godwynn]

You're telling us this so you can dump your shares before they are worthless?

 

[miguel007]

You're telling us this so you can dump your shares before they are worthless?

I'm not Cramer !!!! I read the technical Indicators !!!

 

[emzie]

Googling "AC Investor" leads to identical posts made in numerous forums. I even ran across the base jumper thread on a French-speaking forum. I know you're not a spambot, but you are kinda spamming to raise your blog's profile.

 

[Mise]

It's a famous place on the web!