Finisar Tanks

Mar 9, 2011
J. Webster
Comments Off on Finisar Tanks

I think the message here is tread carefully into earnings. If a stock has made a nice, slow and steady climb upwards, it’s a good idea to take some off or all off ahead of earnings. And especially when the market is at fragile place, what with oil prices causes gas prices to soar and the worry about the Middle East in general. Good to take the whole overall market situation into account.

“Finisar plunged nearly 40 percent in pre-market trading Wednesday after the fiber optics company issued disappointing fourth-quarter guidance, pointing to slowing business in China.

The company said Tuesday it expects adjusted earnings of about 31 to 35 cents per share for the three months ending April 30. Analysts, on average, had been looking for profits of 44 cents per share, according to a poll by FactSet.”

The collapse is painful as Finisar is down nearly 35% as I write this. Here’s a quote from someone on the Yahoo Finance message board enduring this pain.

Waited 10 yrs, thought FNSR made it…

My mind is definitely messed up by the turn of events. I really thought FNSR was going to make a killing for the next yr or so.
It seems like they are always lacking substance.
I am not sure what to do at this point, I want to buy more but is the situation getting worse or is it temporary?
Seems like its deeper than what fin management wants to admit.
Think I will wait for the low 20’s if it gets there. Who the heck knows????????

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