Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Finisar Has Room To Run On Data Center And Telecom Upgrades

Optical components supplier Finisar (NASDAQ:FNSR) has a lot going for it. The company has leading share in the $6 billion-plus optical components market and good technology in attractive markets like 10G/40G/100G transceivers and transponders, tunable XFP, and WSS/ROADM. What's more, with a significant data center switch upgrade cycle and ride-along potential in telecom with clients like Cisco (NASDAQ:CSCO) and Huawei, growth over the next few years ought to be good.

The real question for Finisar is whether a reader is comfortable buying a stock that is highly unlikely to be a good long-term holding. Consistent revenue and FCF growth in this market has been all but impossible, and threats like silicon photonics loom on the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details