This post was just published on ZYX Buy Change Alert
CIEN provides optical networking systems. Our research has shown that phone carriers are likely to increase spending on optical networks in second half of the year. We have been waiting for the earnings release to issue a buy recommendation. Earnings released this morning were positive.
In this market environment, it is best to diversify among a large number of positions but keep position sizes small.
Buy zone: $11.40 to $12.50
Target zone: $19 to $20
Stop zone: temporarily no stop
The best way to control risk is to initiate only a 10% tranche right here. As of this writing the stock is trading at $12.46.
The tentative plan is to add another 10% around $12.11; paying subscribers will receive a signal when the time is right.
