With this kind of climatic volume, there is bound to be a bounce, but if you want something longer term, it might be wise to give it 3 days to settle and see where buyers are interested in coming in.
Acacia Communications Hammered On Customer ZTE's Sales Miss Acacia stock was hammered after the optical module maker's biggest customer, Chinese telecom gear firm ZTE, reported Q3 revenue that missed views. (©the_lightwriter - Fotolia/stock.adobe.com) REINHARDT KRAUSE 12:50 PM ET Reprints Shares of Acacia Communications (ACIA) were hammered Thursday after the optical module maker's biggest customer, Chinese telecom gear firm ZTE, reported Q3 revenue that missed estimates. Acacia stock plunged nearly 11% to 78.20 in early-afternoon midday trading on the stock market today. Acacia stock has been falling since the fiber-optic parts maker announced a secondary stock offering. The company went public at 23 in May; the stock peaked at 120 on Sept. 7. Acacia Communications reports earnings on Nov. 10. Shares of Infinera (INFN) were down almost 10% to 8.35, after it reported Q3 revenue that missed views, despite lowered expectations. Lumentum Holdings (LITE) reports earnings after the market close on Thursday. Lumentum fell 2% intraday, fighting to stay above its 50-day line. IBD'S TAKE: IBD's Telecom-Fiber Optics industry group has cooled off, but there's a mix of top software, semiconductor and internet companies, including China's NetEase, at IBD's Sector Leaders. Get instant access to exclusive stock lists and powerful tools on Investors.com. Try us free for 4 weeks. ZTE on Thursday said Q3 revenue rose 5.2% to 23.8 billion yuan, missing analysts' estimates of 26.27 billion yuan. Shenzhen-based ZTE said net profit rose 10.5% to 1.09 billion yuan, in line with views. The U.S. Department of Commerce announced a ban on ZTE products in March, saying the Chinese firm flouted trade sanctions vs. Iran. The U.S. agency lifted the ban through November, pending an appeal by ZTE. Maynard, Mass.-based Acacia makes photonic integrated circuits (PICs), modules that plug into fiber optic network equipment. Acacia's other customers include Germany's ADVA Optical Networking, privately held Coriant, and more recently Cisco Systems (CSCO) and Huawei. The sell-off in Infinera and Acacia Communications pressured shares in Oclaro (OCLR) and Finisar (FNSR). Oclaro stock was down 8% intraday while Finisar swooned 5%. James Kisner, a Jefferies analyst, in a report said Infinera isn't seeing upside from growing Chinese demand for optical components, unlike Oclaro, Lumentum and Finisar. He says Infinera also faces company-specific execution issues. Alex Henderson, analyst at Needham & Co., said in a report: "We do not see Infinera as indicative of market conditions."
This has taken a well needed haircut. It would still have to be cut in half from here for me to consider buying. Overvalued.
Acacia Communications beats 3Q profit forecasts - https://finance.yahoo.com/news/acacia-communications-beats-3q-profit-230107405.html
This should find its bottom @ 68. Great ER leading to cheap valuation for such growth stock with forward multiple close to market average.
Acacia Discloses Manufacturing 'Quality Issue,' But Stock Rallies https://finance.yahoo.com/m/d4aa7e04-de9f-3b3e-96e1-a5ce8c454832/acacia-discloses.html
Just when i think it finally may be coming up off bottom and was watching for entry >> Acacia Stock Falls As Manufacturing Issue Hits Q2 EPS, Revenue - https://finance.yahoo.com/m/1a74bd6f-dbfd-370f-beed-7b7a20ee0f5f/acacia-stock-falls-as.html
Nice little fake out this morning before new high and looks like it might be ready this time - poking through 50 MA but will/can it push through?
Took profits and "thought" i was going to hold rest but not trusting/liking and out for now - will revisit on Monday.
