- After a few quarters where growth seemed to have slowed to a crawl and margins actually declined somewhat, the perspective brightens considerably.
- The company delivered solid growth in the quarter and promises considerably more.
- And finally, the market seems to catch on, testifying to the increased credibility that CEO Pera enjoys, and rightly so.
September 1st, 2017 · Comments Off on Ubiquiti’s Unique Ways Provides Value
Comments Off on Ubiquiti’s Unique Ways Provides ValueTags: UBNT
August 28th, 2017 · Comments Off on NeoPhotonics – The Biggest Casualty Of The China Slowdown
- NeoPhotonics doesn’t have much of a profitable history, at least not the last 5 years.
- The company is very dependent on China, and as long as Chinese demand doesn’t recover, the shares aren’t going anywhere.
- However, should Chinese demand come back, which it will at some time, a considerable amount of operational leverage could kick in.
- This is because the company shed legacy business, has already build a lot of capacity and has reduced operational cost.
Comments Off on NeoPhotonics – The Biggest Casualty Of The China SlowdownTags: NPTN
August 28th, 2017 · Comments Off on Oclaro Is Cheap
- Another optical networker hit by some headwinds, much of it blowing out of China.
- But we see reasons for some optimism here. The shares are reasonably priced and the company seems to have less legacy business and is well positioned in high growth areas.
- The headwinds will also taper off sooner or later.
Comments Off on Oclaro Is CheapTags: OCLR
August 23rd, 2017 · Comments Off on Cirrus Should Be Fine
- Cirrus sold off after guiding fiscal Q2 a little soft, despite beating Q1 numbers.
- We think not too much should be made of the soft quarterly guidance, given the variety in quarterly figures.
- The company has some good longer-term opportunities and we see Apple more as a strength, rather than a risk.
Comments Off on Cirrus Should Be FineTags: CRUS
August 23rd, 2017 · Comments Off on Lumentum Q4: Take Aways
- Lumentum’s shares performed a dramatic turn-around after the conference call.
- The quarter was a mixed bag, with booming 100G and VSCELs, but soft lasers and telecom.
- On balance, the tailwinds are likely to be more enduring than the headwinds, so we’re fairly optimistic for the shares.
Comments Off on Lumentum Q4: Take AwaysTags: LITE
August 23rd, 2017 · Comments Off on Japan Defies Hard Money Economics
- Japan proposes an interesting challenge to hard money economics, having embarked on seemingly massively irresponsible fiscal and monetary policies.
- One has to keep in mind that these lessons, as extraordinary as they are, only apply under a very specific economic situation.
- That is, they should certainly not be generalized, but they are interesting and very useful nevertheless as Japanese conditions are spreading.
Comments Off on Japan Defies Hard Money EconomicsTags: Japan
August 21st, 2017 · Comments Off on There Is A Bear Case For Applied Optoelectronics But We Can’t See Much Of It
- Applied Optoelectronics is a battleground stock with the shorts getting a boost by a surprise softness in Q3 guidance from the company.
- When parsing the competing narratives, we see little in the Q3 softness for the shorts to rejoice.
- More specifically, we don’t see any reason for AAOI doing much worse in 100G as it is already doing very well in 100G at the moment.
- Perhaps the best short case is for the industry to overbuild capacity for 100G and beyond. While that scenario can’t be totally excluded, so far this isn’t happening and demand in 100G is booming.
- Even then the company is likely to stand out as a cost leader.
Comments Off on There Is A Bear Case For Applied Optoelectronics But We Can’t See Much Of ItTags: AAOI
August 21st, 2017 · Comments Off on Universal Display Will Grow Into Its Valuation
- A financially very sound market leader facing expanding markets which are in the first innings of development.
- But the shares are already reflecting most, if not all, of the near future growth.
- And longer term, the company is not entirely without risk as it’s not totally impossible that competing technology could eventually match it on some and exceed on other metrics.
Comments Off on Universal Display Will Grow Into Its ValuationTags: DATA
August 11th, 2017 · Comments Off on Tableau Software Steps On The Accelerator
- We didn’t see a long case for Tableau, but others clearly do.
- Re-evaluating the situation, we do see the growth and the operational leverage.
- However, we still don’t see a path to profitability.
Comments Off on Tableau Software Steps On The AcceleratorTags: DATA
August 11th, 2017 · Comments Off on The Next Eurozone Battle Is Shaping Up
- The structural design deficiencies in the eurozone have been papered over by the cyclical tailwinds in the economy and balming ECB action.
- But at the first sight of headwinds, these will reassert themselves with a vengeance.
- Remedial action is already very difficult as it involves a leap forward in European integration for which there is no electorate.
- But things are even more complex as there are two very different narratives ruling the eurozone.
Comments Off on The Next Eurozone Battle Is Shaping UpTags: Eurocrisis