Kirk Lindstrom

Communications Small Caps: Ever a Risky Ride

Thanks for the list of high risk stocks.

You wrote:

"Finisar (FNSR) $0.63 and Powerwave (PWAV) $ 1.27 are similar financially only. Both are almost breaking even and increasing annual revenues, but have a large amount of debt and negative BV;"

Finisar has a positive book value according to both Reuters and Yahoo! while Powerwave shows a negative book value.

www.reuters.com/financ...

finance.yahoo.com/q/ks...

A large debt load not always bad, especially if you used the money to buy a revenue generating factory at dimes on the dollar during the downturn. Finisar has used its financial strength to acquire growth assets and it sold a slow growth asset to JDSU to help finance it.