August 11, 2011
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 Finisar (Nasdaq: FNSR ) rallied close to 17% before closing up 14.5%, riding on the coattails of Cisco's (Nasdaq: CSCO ) strong earnings report.
So what: Several optical-networking stocks rose. JDS Uniphase (Nasdaq: JDSU ) and Ciena (Nasdaq: CIEN ) each soared about as much as Finisar, presumably on the idea that a resurgent Cisco is reflective of industrywide demand for fast data delivery gear.
Now what: Finisar could benefit more than most as a supplier for Cisco's own branded optical-networking equipment. There’s no guarantee, of course; but I get the reasoning behind the rally. Do you agree? Disagree? Weigh in using the comments box below.
Interested in more info on Finisar?Add it to your watchlist.