Alliance Fiber Optic Products' (AFOP) shares have surged 170% in the last three months, a consequence of much higher revenue and profit expectations, as management raised guidance two times in the previous two months. The company is slated to report earnings next week, and we might see "sell the news" mentality (this is what I am expecting after such a surge on preannouncements), which could bring an opportunity to buy the shares when they return from overbought levels. Even after such a surge, the stock seems undervalued, given the reported levels of revenue and profit growth and bright future prospects.
Alliance Fiber Optic Products designs, manufactures and markets a broad range of high-performance fiber...
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