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[Costa]

Over the past days we are hearing rumours about a possible buyout of Ciena. In fact, these rumors have increased significanlty and are taking into account the investors minds. Ciena's name has been several times mentioned out there as one of the possible targets of Cisco or even Juniper. I don't know the fundamentals of the information neither where they came, but it makes a lot of sense for me, because the price is now more attractive than ever. The stock dropped nearly 90% from its recent high, making it incredibly cheap on a P/E basis. The communications networking company remains well positioned in the market in two distinct areas of business, the video transmission and intelligent networking, where growth remains sustained by innovation . Honestly, I'm not quite sure if this deal will happen in the near future, but it's a fact that somebody believes the rumors because they are putting some serious cash down on their options bet, giving the impression that a buyout offer may be in the cards in the near future. Future short term earnings look bleak but the current price of stock is already taking this fact in consideration. From a technical perspective : Although the moving average still shows weakness as 50 day moving average is below 200 day moving average, positive momentum seems to be back as the stock is back above 50 day moving average. In addition MACD is also back above 0 indicating the stock is back in bull market. Technical indicators marked in the chart. (1) MACD above sell line - "buy" signal. (2) +DMI crossed over -DMI indicating an "up" move. (3) RSI is now in Bullish territory

[Costa]

+ 16% !!! "Analyst Jeffrey Kavaal told investors in a research note that Ciena is set to make gains against struggling competitors with a new generation of gear for ethernet and Internet network providers. Kavaal said long-standing products like Ciena's CoreDirector, an optical switch used in ethernet networks, have also performed well, generating sales of more than $270 million in 2008. That's up from just under $80 million in 2006, Kavaal said. He upgraded shares to "Overweight" from "Equal Weight," and moved his price target to $10 from $7. The good news for Ciena comes after a recent hit to the company's share price. Ciena, based in Linthicum, Md., reported disappointing results for its fiscal fourth quarter in December because of the declining economy, posting a loss of 10 cents per share and sending the stock down 20 percent."