Applied Opto: Competitive Advantage

  • In terms of margins and inventories, Applied Opto has escaped most of the damage done by the unforeseen crash in demand from its top customer.
  • In a presentation to investors, the CEO went deeper into their manufacturing model and the sources of their competitive advantage.
  • And according to us, there is plenty of evidence not to dismiss this.
  • We also think the shares are cheap, even with some light headwinds from the datacenter market.
  • While we obviously can’t predict the share price, we think it’s unlikely the shorts have more fundamental cards to play.

Source: Applied Opto: Competitive Advantage – Applied Optoelectronics, Inc. (NASDAQ:AAOI) | Seeking Alpha