Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, optical networking specialist JDS Uniphase
With that in mind, let's take a closer look JDS Uniphase's business and see what CAPS investors are saying about the stock right now.
JDS Uniphase facts
| Headquarters (Founded) | Milpitas, Calif. (1979) |
| Market Cap | $5.97 billion |
| Industry | Communications equipment |
| Trailing-12-Month Revenue | $1.6 billion |
| Management | CEO Thomas Waechter (since 2009) CFO David Vellequette (since 2005) |
| Return on Equity (Average Past 3 Years) | (25.8%) |
| Cash / Debt | $620.9 million / $308 million |
| Competitors |
Oclaro Finisar |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 20% of the 832 members who have rated JDS Uniphase believe the stock will underperform the S&P 500 going forward. These bears include daddycswhite and fellow Fool Sean Williams (TMFUltraLong), the ninth-ranked member in all of CAPS.
Just yesterday, daddycswhite touched on the stock's seemingly unsustainable price run:
This is the EXACT same stock and company as it was 6 months ago and a year ago. Same people moving the same chess pieces they've been moving for a long, long, unprofitable while. ... [T]he idea of [JDS Uniphase] returning to earth is just a matter of when the lustre rubs off this industry.
Currently, JDS Uniphase even sports a lofty EV/EBITDA of 32.5. That's a premium to listed rivals Oclaro (21.6) and Finisar (27.2), as well as much larger optical networking stock Corning
CAPS All-Star TMFUltraLong elaborated last week on the bear case:
The motto here should be JDS Uniphase, disappointing investors and crushing hope since 2001. JDS finally met their lofty expectations for ONE quarter and investors are shooting it to the moon. ... I'm just not a fan of the business. You can pick nearly any fiber company and get a better, more consistent, history or profits. I'm a seller.
What do you think about JDS Uniphase, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
