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

Advanced Photonix A High-Risk Optoelectric Play

Microcap optoelectronic components company Advanced Photonix (NYSEMKT:API) hasn't had the easiest time of it, with supply issues interfering with its telecom business and frustratingly slow progress with the company's terahertz product platform. A recent equity offering has bought the company a little more breathing room and management is looking for 20% growth in the next fiscal year, helped by a strong recovery in telecom. The optoelectronics market is very competitive and customers constantly push for lower prices, but internal cost reductions, a ramp up in Chinese telecom spending, and increased fiber to the home bandwidth requirements could support better results.

Before going further, investors need to appreciate the above-average risks of a stock like Advanced Photonix. The company...

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