A few nights ago I started publishing an interview with Jerry Rawls, Co-Founder and CEO of Finisar (NASDAQ:FNSR), an fiber optics components leader that has gone through tremendous turmoil in its relatively long history.
Remember, fiber optics was at one time a very hot market. Numerous startups got funded and massive amounts of venture money went down those proverbial optical tubes. The telcos managed to build up enormous over capacity in the system until the market finally collapsed.
Today, on the wings of upstart (and questionable) services like Google's (NASDAQ:GOOG) YouTube, online video has become a major phenomenon. Braodband has, over the last 10 years, become ubiquitous, at least in the US. And it seems as though the fiber optics market is on its way back.
Companies like Finisar (FNSR), JDS Uniphase (JDSU), Opnext (NASDAQ:OPXT), Avanex (AVNX), Bookham (BKHM), and Infinera are potential beneficiaries of this trend. For those investing in fiber optics today it may be worthwhile to follow the saga of Finisar, as they navigated their way out of the telecom meltdown, and has emerged as a strong player.
Of course, another very large beneficiary of the online video trend is Cisco (NASDAQ:CSCO), which is doing everything it possibly can to boost the trend further. Acquiring social media startups has been one such recent tactic. Several of the above companies, most certainly Finisar, JDS, Opnext, are key suppliers to Cisco, and when Cisco wins the crumbs of those wins tend to travel downstream all the way to their factories in Asia!