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My 5 Stocks for Apple TV Theme is About to Kick in for JDSU

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I'm seeing the weakness in JDSU and feel that if we are truly at a turning point in the Fiber Optics space, then JDS Uniphase (JDSU) shares are still massively undervalued and they are also one of the prime institutional "go to" names. I can almost guarantee the shares of JDSU are under-owned throughout the big money set. Also, the last quarter was nearly great and JDSU still has a material catalyst coming.

As I wrote in the my "5 Stocks for the Apple TV" some months ago, back in April: "JDS Uniphase (JDSU) -- This may seem like an odd entry here, but as MRVL has the "Kinect effect" -- it's even stronger for JDSU. JDSU makes critical fiber optic components that allow for the gesture recognition in these gaming devices to work. JDSU has already been in active development with this same technology for TV's, automotive, PC's, home security and likely defense applications. Bottom line, JDSU is one of the leaders in optical gesture recognition technology. Also, a 50% move here is probably the easiest hurdle for the companies on the list. I actually think this name is close to a 2-3 bagger in 2 years or less. Near-term, JDSU is backing off it's $14's highs it hit in the after hours after the most recent report. I think any move close to $1.50 or more off that $14 level is attackable for trading purposes."

I've been writing about the AAPL TV for some time and one of the primary features I've long talked about is the potential for a very high level of interactivity. I believe gesture Tech will be a huge feature in operating the new TV, the built in DVR and likely also embedded gaming features.

Moreover, I'm starting to see others picking up on this potential and JDSU provided more clues on their latest earnings call -- "We also continue to develop new applications for gesture recognition, another adjacency. We recently signed an advanced development contract with a major customer in the home entertainment area. We are collaborating with several others on related commercial applications. This is in addition to ongoing work related to our current customers in the next-gen platform. As we mentioned on a previous earnings call, we expect new applications for gesture recognition to launch within the next 12 to 18 months."

Bottom line, JDSU is not priced for any material uptick/turn in the broad Fiber Optics space, and it's certainly not priced as a key Apple (AAPL) supplier. Let alone being priced for a combination of both.

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POSITION:  Position in JDSU.
TICKERS:  NASDAQ:JDSU   

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