- Buyers Guide
RF to Light Update - March 5, 2007
First Things First:
Ending 3/2/07 The RF to Light 100 dropped 5.9%, YTD -.1% at 2456. NASDAQ down 5.8%, YTD -1.9%. The market sector fiber optic components were hit hardest, i.e. down 9%. I am sorry for failing to give advanced notice. I wish I took my secondary “market overbought” indicators more to heart! I also wish Alan Greenspan had kept his mouth shut! 2 Weeks ago I reported that we are in a narrow trading range between oversold and overbought. Today my oversold market indicator stands at 81% = oversold. Initial financial reports ending Dec. 06 indicate: Revenue trend declining, financial strength improved but with a declining trend.
In the News:
Stock markets declined around the world followed by Alan Greenspan’s comment about a possible but not probable recession in the US end of 2007. Consumer confidence rose in February to a 5.1/2 year high. Inflation dropped to 2.08% in January, the ISM manufacturing index jumped to 52.3 in February. We will have more global report cards next week. Aeroflex struck a deal to be bought by private equity firms for about $ 1 billion. Stock holders would receive $ 13.50 a share; Friday’s closing was $ 11.01. JDS Uniphase has agreed to acquire Picolight for about $ 125 million.
PIS (personal investment system):
Within 5 year low: Exar, Zhone, Verizon, Solectron, 3Com, Bookham, Microsoft, Maxim, Intel, Conexant, Powerwave
Market Oversold Indicator:
increased to 81% (80% = market oversold).
Market Overbought Indicator:
down to 58%