Through TheFLY's Eyes: JDS Uniphase Corporation
from Theflyonthewall.com







Arbitrage Pressure Provides Trading Opportunity

JDS Uniphase’s (JDSU) stock has gotten crushed, dropping from $4.23 to $2.80 for a 34% drop since March. The company issued a convert on Thursday night which has put arbitrage pressure on the stock. This shorting pressure should be coming to an end soon.

The $375 million convert will be used to repay debt which was due to mature in 2008. The company is close to breakeven and has been shifting its product portfolio through acquisitions and divestitures, as Kevin Kennedy, a well-respected former Cisco executive, continues to reshape this company.

Kennedy has more work to do, but with tremendous short-term pressure since the convert announcement last week, the stock should be due for a short term pop.