my end of year review of GGOX
INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.
GigOptix
GGOX (market cap $0.034B)
GigOptix produces and sells high-speed, very technical electrical and electro-optical components, primarily for the telecommunications market. They are a small company and are the result of small acquisitions. Despite their small size, they are projected to be profitable next year, and my read of their cash flow suggests that their most recent quarter showed positive cash flow. I'm still trying to understand their debt/equity situation, but it might be high because of the acquisitions. It might also appear high because a small number for a small company can still appear large in ratios.
I like the industry that they are in, and I am a fan of the technologies they acquired when they bought Lumera (LMRA), which is how I became a shareholder of GGOX.
At this point I don't have a confident feel for the company's long term strategy or business plan. They operate quietly so there is little news to work from, and they are also one of my smallest holdings; so there is little incentive for me to learn more. I look forward to the next earnings report as an opportunity to examine their financial trends and possibly gain confidence in their future.
I will continue to HOLD and might BUY more because, at a simplest level, they are an overlooked, profitable and growing company.
DISCLOSURE LTBH of LMRA since 2004. |
