Oclaro is rallying on no apparent news as posted by Benzinga. That's right, there isn't any news that I can find. Therefore, there are 3 possibilities to explain it. The first would be some positive news that has leaked. I doubt this is the answer as Q2 isn't over yet and Oclaro is still in the midst of a merger (which will prove to be successful given Alain Coulder's merger history). The second would be a competitor/customer has recently announced very positive news. There maybe some truth to this one. Ciena has reported decent business and a decent outlook. The third is short covering. I think this is the answer. There is currently 8m shares short which represents about 20-25% of the float, and I doubt that many shares were purchased recently. Also, we are seeing the same rally's in many low dollar shares without news.
KEEP THE PRESSURE ON!!!
jWells
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