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Optical components

Bookham Surges

3:10 PM -- It's not always easy to tell why a stock like Bookham Inc. (Nasdaq: BKHM; London: BHM) shoots upward or downward on any given day. Trading volumes are low, so a simple act like a major bank buying or selling shares can trigger a big swing.

Offhand, the stock's 21 percent rise today -- up 32 cents, at $1.79 -- looks like it might be the result of an analyst note. Paul Bonenfant, who's watched optical communications for some time at Morgan Keegan & Company Inc. , published his first reports on Bookham this morning, saying growth is going to kick in, driven by tunable transmitters, especially.

Bonenfant is keen on Avanex Corp. (Nasdaq: AVNX), too, but notes that legacy products might stunt its growth. Avanex is up 5 cents (6.2%) at 86 cents per share today.

Of course, Avanex has the overhang of a CEO change in the works, after Jo Major's abrupt firing. That's giving investors pause; Bonenfant and others speculate whether it means some big move is in Avanex's near future. (See Avanex Axes CEO Jo Major and Avanex's Major Coup.)

— Craig Matsumoto, West Coast Editor, Light Reading

Pete Baldwin 12/5/2012 | 3:36:28 PM
re: Bookham Surges Well, this was probably the real reason:
http://www.lightreading.com/do...

Trying to put together a story on it now.
deer_in_the_light 12/5/2012 | 3:36:27 PM
re: Bookham Surges Craig, you are probably right, this announcement could be seen as very positive for Bookham.
Although there are a few of the optical stocks that seem like good picks at such low valuation, maybe with the exception of JDSU and Finisar who are getting higher multiples. Most of the others Bookham, Avanex, Opnext, Oplink are very low despite imporved financial results. The earnings season is starting and will give some interesting indications.

deauxfaux 12/5/2012 | 3:36:27 PM
re: Bookham Surges BKHM is the same price it was last friday. It just took a huge dive with the rest of the market and then rebounded.
deer_in_the_light 12/5/2012 | 3:36:23 PM
re: Bookham Surges Well, well, well... you might be wrong the stock jumped today after the Ciena announcement.
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