Avanex Stock Soars
The stock's daily volume, which is usually in the 336,590 range, has been up over a million for two days now, and it was at 2,027,394 and climbing at around 2 p.m. Eastern. Such high volume is usually a signal that something is afoot.
Avanex held an upbeat conference call two days ago, but though its investors are a slow lot, it's doubtful that they're just now reacting to that news. More likely, say some individual investors, is that a large institution decided to buy some Avanex shares, a move that would surely give the stock a nudge. Others speculate that Avanex might be on the brink of selling out to another company -- though, as yet, no one has an idea who'd be interested.
In its third quarter of fiscal 2003, Avanex reported revenues of $5.4 million, compared to revenues of $10.2 million for the quarter ended March 31, 2002. The company's net loss of $10.4 million, or 15 cents a share, was much better than the net loss of $30.1 million, or 45 cents a share, it reported for the year-ago quarter (see Avanex Narrows Q3 Loss).
The company is also aggressively trimming its operating expenses, mainly through layoffs and outsourcing. Cisco, one of the sector's most stable companies, continues to be one of Avanex's 10-percent customers.
That's all well and good... but not great. And certainly not enough, on its own, to give Avanex's shares that kind of boost. As Emma Peel once said, "Always keep your bowler on in time of stress, and watch out for diabolical masterminds."
— Phil Harvey, Senior Editor, Light Reading