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.
Follow Cramer's trades for his charitable trust.
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