Optical Stocks Hit by Rumor
Optical stocks took a beating on the Nasdaq today, with some down more than 10 percent.
One reason could be rumors floating around Wall Street that research analyst Paul Sagawa of Sanford C. Bernstein & Co. Inc. will downgrade several optical stocks this evening after the market closes. Sagawa will lead a conference call tomorrow morning at 11 a.m. EST where he is expected to announce negative optical industry news, based on a survey of over 60 companies in the sector.
One of the stocks hit the hardest today was ADC Telecom (Nasdaq: ADCT). Coming down off its high of $29 this morning, the stock fell roughly 11 percent. JDS Uniphase Inc. (Nasdaq: JDSU) also took a hit, its stock falling about 5 percent. Lucent Technologies Inc. (NYSE: LU) and Nortel Networks Corp. (NYSE/Toronto: NT) also dipped about 5.5 percent and 9.2 percent, respectively. High flyers such as Juniper Networks Inc. (Nasdaq: JNPR) (down 2 percent) and Corvis Corp. (Nasdaq: CORV) (down 7 percent) also suffered.
Sagawa did not return phone calls before press time.
-- Marguerite Reardon, senior editor, Light Reading, http://www.lightreading.com