Charles:
You can think of optics as being in the low volume discrete components phase, making an analogy to the semiconductor industry.
Most importantly, the industry dynamics are very different. Fiber optics is B2B and semis are almost direct to consumer. If you recall, semiconductors took over for tubes, which were in radios and televisions...what PCs and laptops are today, they were then. So semis have always had a high volume market in consumer products.
Fiber optics was all lab stuff until the late 80's, then emerged into the long haul networks. It is not widely used in consumer products. The latest consumer electronics boxes have fiber connectors on them, but nobody I know of is using them. Besides, that is a radically different market than what BKHM is into.
They have guts alright, but that may not be enough. They have to cut their bleed, or they will have to get more equity, and what does that do to you if you are holding now? You get washed. That's why the stock is down.
-JMHO |
