The communications group has been a strong overall performer with investors gravitating to the like of VZ and T for defense and yield. Drilling down deeper into the sector we see names that may be getting overlooked and one of them is LITE. It came public early last August before the meltdown later in the month, unfortunate timing, but it has weather the storm very well. Below is the chart precisely how it was presented in our Wednesday 2/10 Game Plan. The trigger was hit on 2/11 and it has risen 5% since.

Stocks that can be bought as they retest prior breakout triggers are LITE. LITE is a recent IPO in the optics arena and is higher by 4% YTD and 35% since coming public last August. As you would imagine there has been some frantic trading as is custom with new issues and there were 2 pretty significant streaks with a 7 week winning streak the weeks ending between 11/6-12/18 which rose 40%. There was also an 8 week losing streak between the weeks ending 8/28-10/16 which declined in the neighborhood of 40% as well. The stock is on a current 3 week WINNING streak up 22% in the process. LITE has just reported earnings twice and each rose strongly with gains of 7.2 and 8.5% on 2/5 and 11/11. The most recent release took out a cup base pivot point of 22.74 and enter on a retest.

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