Thoughts on CIEN
By Sean Udall

I view Ciena (CIEN) as one of the truly unique names left in the networking space with well above industry growth potential. They are one of the few remaining survivors of the optical bubble but always had real value driving technology. They have also shown some excellent strategic vision with their acquisitions.

Like many niche leaders, CIEN got dramatically oversold during the crash and frankly the stock should have never traded at those extreme lows.

Basically, I see the stock into the $30's or even $40's again unless someone gets them to cave into a high $20's offer before the end markets become robust again.

Cisco (CSCO) bought Star for a price that I feel Star would have well exceeded had they stayed solo. I don't see CSCO making a run for CIEN but if I was Juniper (JNPR) or Ericsson (ERIC), I would be trying to acquire CIEN before the next big bandwidth growth phase.

Technically the stock is working off a short term overbought level and is now quite oversold while the weekly chart is still strongly bullish with many MA's curling higher.

Editor's note: Sean had positions in CIEN at the time this Buzz was published.