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(NASDAQ:INFN) reported earnings way above expectations (not to be confused with "estimates") back on January 29, guided to a very good 2014, but more importantly, stated repeatedly that its visibility in the near and longer term has never been better. The stock jumped 30% the following day only to dribble back lower ever since. To say it has been frustrating is the understatement of the year.
On Thursday morning Ciena
(NASDAQ:CIEN) reports its quarter, and in the past, Infinera has reacted to Ciena's numbers, even though Infinera competes with Ciena in only one niche sector. Aside from wishful thinking, I am pointing this out because Infinera's chart is begging for a catalyst to break out from under a crowded area of moving averages and trend lines. Throw in a textbook "island reversal," and above $9, $10 should be a layup.
Click to enlarge
If there hadn't been a nagging amount of non-Rule 10b(5) insider sales, I don't think I could resist adding to my already very large long.
Position in INFN.
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