ARjENT Services LLC Announces Investment Opinion: Analyst Initiates CIENA Corp. with Buy Rating.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- ARjENT Services LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control analyst Guy Ortmann issued a research report today initiating coverage of CIENA Corp. with a buy recommendation based on a combination of fundamental and technical analysis. In his report, Mr. Ortmann stated: "The company reported their most recent quarterly results on March 7. That Q1 '08 quarter showed a net profit of $0.47 per share, a 113% increase on a y/y comparison and 17% greater than Street estimates of $0.40 per share. Sales were up over 37% to $227.4m versus $165m y/y and higher than Street estimates of $225.6m and management stated Q2 revenues should be up an additional 5% on a sequential basis. Gross margins rose 6.6 percentage points from the previous year to 51.2%. Net margins nearly doubled from 6.7% in Q1 '07 to 12.7% in Q1 '08. "It is our opinion that CIEN CIEN Ciena Corporation (stock symbol) will be a major beneficiary beneficiary Person or entity (e.g., a charity or estate) that receives a benefit from something (e.g., a trust, life-insurance policy, or contract). A primary beneficiary receives proceeds from a trust or insurance policy before any other. from the increased need to offer additional bandwidth and services to accommodate the explosive growth in data and video transmission in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and wireless industry. "Subsequent to the low close ($22.83 in January), CIEN managed to trade ABOVE the steepest down trend line in late January (albeit on light volume) throughout February and into early March. The chart (shows) what we believe to be a significant change in the trading characteristics of CIEN. At that point, not only does the stock penetrate above the February resistance but it does it on a SIGNIFICANT INCREASE IN TRADING VOLUME Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. of more than 16 million shares in a single day. This was in fact the day that CIEN reported earnings that exceeded street estimates by a wide margin. It is our opinion that that event was the initial signal that the supply/demand struggle in the stock price finally had a conclusive Determinative; beyond dispute or question. That which is conclusive is manifest, clear, or obvious. It is a legal inference made so peremptorily that it cannot be overthrown or contradicted. reversal, giving the bulls the upper hand. ...the chart suggests that the price should be able to appreciate to the $34.00 range before encountering significant resistance in the near term. If CIEN should be able to trade above that level going forward, the next and long term price objective would be at the $40.00 level...." |
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