JDS Uniphase Gets a Boost From the Cramer Effect

JDS Uniphase (JDSU) is having a terrific morning on Thursday as it has gained nearly 11%. When a stock breaks out like this, we always look for a catalyst for the move and in this case the primary reason seems to us to be an endorsement from Jim Cramer. We often cover Cramer’s Mad Money show on our blog because of this reason; he moves stocks, specifically stocks that he spends a fair amount of time on. There are small examples of the “Cramer Effect” all the time, but a recent example was when he discussed a bullish thesis on mining stock Freeport McMoran (FCX) and in the absence of any other news he created frenzied buying the next day. The stock finished that day with its largest one-day gain in history rising 11%. It appears that there is something similar going on with JDSU Thursday.