Long Position on FNSR @ $28.00 on 4/22/2014 (Rumor)

Finisar Corporation (FNSR) provides optical subsystems and components for data communication and telecommunication applications in the United States, Malaysia, China, and internationally.

The company’s optical subsystems primarily consist of transmitters, receivers, transceivers, transponders, and active optical cables that provide optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in building communication networks, including the switches, routers, and servers used in wireline networks, as well as the antennas and base stations for wireless networks. It also offers wavelength selective switches that are used to dynamically switch network traffic from one optical fiber to multiple other fibers without converting the optical signal to an electronic signal.

The company’s optical components primarily consist of packaged lasers and photo detectors for data communication and telecommunication applications; and passive optical components for telecommunication applications. It markets its optical products through its direct sales force, as well as through a network of distributors, manufacturers’ representatives, and manufacturers of storage systems, networking equipment, and telecommunication equipment.

Shares have formed a bullish "cup and handle" on market rumors that Cisco, its largest client, may be the company out right! In recent days, there have been several upgrades of the stock on the company's fundemntals and its latest earnongs report. In that report, Finisar said it earned 44 cents a share, in line with analysts’ expectations on revenue of $294 million. Shares are now expected to head higher from present levels.

52-Week Trading Range: $12.17 - $28.43

Entry Point: $28.00

Stop Loss: $26.60

Target Price: $30.80

Updates

4/30/2014 10:07:18 AM

FNSR fell below stop loss. Closed at $26.20

Position closed on 4/30/2014 at price of $26.20 with a -6.43% loss in 8 days.

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