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Applied Optoelectronics, Inc. (AAOI) Can Go Higher

|Includes: Applied Optoelectronics, Inc. (AAOI)

AAOI has been beating estimates lately and its gross margin is increasing. With 2017 EPS now estimated to be at $3.39, the forward PE is 13.6 (Price of $46 over $3.39). This stock has room to go higher. I believe this stock can reach $60 or so in the next six months and can be a take over candidate later on.

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in AAOI over the next 72 hours.