Oplink Communications, Inc. (NASDAQ:OPLK)

CAPS Rating: 3 out of 5

The Company provides design, integration and optical manufacturing solutions for optical networking components and subsystems.

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Player Avatar NeroSagetrade (91.74) Submitted: 1/16/2008 3:18:20 AM : Outperform Start Price: $11.92 OPLK Score: +8.58

Making Oplink Communications a pick based on the immense value this is presenting. Trading at 0.99 times book value and 9 times forward earnings estimates I think we are getting very near a bottom. Oplink is growing revenues at over 80% this year and a solid 15-20% in 2009 and they sport a boatload of cash on hand, just shy of $8 per share to be exact with zero debt. Once again, this is a company that has buyback or buyout written all over it. That cash will buoy the stock against much further downside as long as they remain profitable and brokerages have begun the process of upgrading OPLK due to their valuation.

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