Avanex Corp (AVNX)

Nuts2Bolts (< 20) Submitted: 2/17/07 12:11 AM : Start Price: $29.40 AVNX Score: -57.69

Nuts2Bolts likes AVNX far better than a stock that CAPS players seem to like alot - OPLK.

I don't think there's any serious comparison between the two - on the side of AVNX.

Compare -
OPLK -

Beta VERY HIGH at 2.0
P/E also VERY high at 41.4
Mkt CAP of 368M
Quick Ratio absurdly high at 13.57, and Debt/Assets absurdly low at 0.00.

All of this tells me that there is something fundamentally wrong with this company. NO companies enjoy a QR of over 13 - Total Assets minus current inventory divided by Total Liabilities.

If OPLK has sooo much $$ in the bank, why is their P/E ratio so high at over 48, and yet their eps is absurdly low at .40.

There is something seriously wroong with the fundamentals of this company - perhaps how it is run? - and the serious down-trend of their price chart in the last 2-1/2 months is a serious signal that many investors are seeing - and sensing - the same issues.

ON THE OTHER HAND, take a look at AVNX - very similar company profile, BUT -

Current price of just 1.95.
Mkt CAP of 405M
Beta of 1.7, yet
QUICK RATIO much closer to both reality and sanity at 1.57.
INST. ownership of 27.34, so some FUNDS are buying into this company too.

And, yes, they've been losing money, and bleeding red ink, but they project a profit of .01 per share by Q1 08, and nearly break-even by Q4 07, at an EBITA loss of a mere .001.

Between these two companies, I don't think there's a serous comparison on future prospects - what investors buy stocks for in the first place. I go with AVNX without much sense of risk. And at 1/10 the price, it's a pretty damn good risk!

Regards, Nuts2Bolts

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