Finisar Tumbles After Being Downgraded & Nikkei Slips From 32-Month High -- Finspreads
LONDON, Jan 21, 2013 (MARKETWIRE via COMTEX) --
Finspreads: Shares in the optical module maker Finisar Corp tumbled
at the close of trading on Friday (January 18th), after it was
downgraded by investment bank Jefferies and Co, who said that demand
for the company's optical communication components are set to suffer
from the imminent release of products from Intel and Cisco. Intel
announced that silicon-phonotics technology for data centres was to
become available in the near future, a move which some analysts
believe will have a negative impact on Finisar.
Intel's willingness to integrate silicon phonotics could prove
popular with many businesses, as it will reportedly allow much higher
data transfers between processors and devices than with traditional
technology manufactured by Finisar, meaning less hardware would be
required; reducing building and operation costs.
Jefferies and Co has subsequently downgraded Finisar's stock from
'hold' to 'underperform,' halving its price target to $7.50.
At the close of trading on the Nasdaq, Finisar saw its shares fall to
$13.98, a drop of 10.27 per cent.
Nikkei slips from 32-month high
Shares in Japan fell at the close of trading today (January 21st),
with the Nikkei 225 slipping from a 32-month high.
The drop comes after the yen climbed against the dollar after hitting
its lowest level in two-and-a-half years, with a policy decision
expected from the Bank of Japan tomorrow.
A rising yen has hit some of the country's biggest exporters. Nissan
Motor Co, whose biggest market is North America, dropped 1.5 per
cent. Fanuc Corp slipped 3.9 per cent after its rating was cut at
The decision of Apple to reduce orders of screens for its iPad has
dealt another blow to suppliers such as Sharp, who saw its shares
fall by 3.8 per cent.
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