10 years ago the fiber optic boom was an optimistic new era boom, now we see the real fiber boom coming and people and investors are scared from the 2000 bust and will not invest early. Fiber is not only growing in USA we can read about it everywhere like Africa that is a huge continent and plenty of fiber will be used over there too. China Fiber Optic Network System Group Ltd the Group's revenue surged 50.0% compared to the same period last year to RMB1,257 million (2010: RMB838 million). Gross profit increased by 49.1% to RMB399 million (2010: RMB268 million). The Group's profit for the year saw a substantial increase of 39.2% to RMB253 million (2010: RMB182 million).
Domestic sales of fiber optic patch cords alone surged by 71.7% to RMB1.012 billion due to the continued surge in demand for fiber optic patch cords by telecom network operators and broadcasting and television network operators in China. Overseas sales consisted of fiber optic patch cords shipped to customers in Ireland and New Zealand was RMB221 million in 2011, representing an increase of 13.0% compared to last year.
This is a significant number and still the numbers will continue to grow for many years to come, there is a great chance to look in to the right fiber optic company and make a long term investment.
I like to find the smaller company that will have a great opportunity to grab market share and grow fast, Alliance Fiber Optic Products Inc.stock price has falling sharply and will rebound Alliance is surely undervalued in the long run and in my opinion worth looking in too.
I have written before about a company that is way too small for most investor but have a huge potential the company name is Valdor Technology International Inc. Valdor survived the 2000 bust and have been there for a long time and have some sales now and are making the final testing for Valdor connector at Lockheed Martin. When I read the news about Fiber there is a lot of signs everywhere not only in USA market, we will read and hear more about the Optic fiber company's.
Disclosure: I am long OTC:VTIFF.