October 26, 2010
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Oclaro (Nasdaq: OCLR ) dropped as much as 10% in intraday trading today. There was no news directly involving this optical components maker.
So what: It's possible the sell-off is related to a disappointing earnings report from Tellabs (Nasdaq: TLAB ) , which also serves the telecom industry. Tellabs is down about 15% today, and a few other related companies, such as Finisar (Nasdaq: FNSR ) and JDS Uniphase (Nasdaq: JDSU ) , are also trending lower.
Now what: Oclaro is scheduled to report earnings on Thursday morning. Investors are better off waiting for that and listening to the conference call -- rather than playing a guessing game based on other companies' earnings -- before making any buy or sell decisions.
Interested in more info on Oclaro? Add it to your watchlist by clicking here.