A hot way to play 4G
JDS Uniphase is the right stock for the right time as people look beyond Qualcomm.
Last week, I took a look at one of my favorite stocks, JDS Uniphase (JDSU), to ponder whether the deal is done and the stock had run. I came back with an unequivocal no, not yet, and backed it up with Ken Shreve's analysis (man, has he been hot).
You can always tell when a stock is under-owned, and that's what JDS Uniphase must be, as it gapped up and then just continued to ramp on top of the gap. I think people have been looking for 4G plays, trying to broaden beyond Qualcomm (QCOM), and have stumbled on JDS Uniphase as a company that you must use to test 4G systems. It looks like the company will be rolling out a new line this week at the big Barcelona telecom equipment conference.
I also think people are recognizing that JDS Uniphase powers a key portion of the Kinect, the cool-as-all-get-out Microsoft (MSFT) game system -- and you don't have to own the boring Microsoft stock to get the benefit. (Microsoft owns and publishes MSN Money.)
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Can it keep going? I have to tell you, I read the chatter about how my TV show has got the stock going, and how it is a big short squeeze now. I have no doubt that there's a squeeze going on, but I know it isn't because of my TV show. It is simply the right place at the right time, as right as it was wrong for a decade.
If I owned it, I’d stay long into Barcelona and then perhaps take some profits.
At the time of publication, Cramer had no positions in stocks mentioned.
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Excitement is growing about the company's new iPhone, expected this fall.
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