Alliance Fiber Optic Products, Inc. (NASDAQ:AFOP)

CAPS Rating: 4 out of 5

The Company designs, manufactures and markets fiber optic components for communications equipment manufacturers.

Results 1 - 20 of 35 : 1 2 Next »

Recs

0
Member Avatar TrackMagicFormul (84.71) Submitted: 10/8/2014 9:58:57 AM : Outperform Start Price: $11.84 AFOP Score: +4.23

Investors should consider selling puts. You can achieve some very high annualized returns at strikes significantly below the current price. e.g.

Jan 15 $10.00 strike at 60¢ has 20% discount and 21% annualized return.

Recs

0
Member Avatar bsme97 (< 20) Submitted: 9/29/2014 7:51:34 PM : Outperform Start Price: $12.60 AFOP Score: -0.48

Competitive advantage and quality products.

Recs

0
Member Avatar OklaBoston (66.45) Submitted: 9/22/2014 2:04:23 PM : Underperform Start Price: $12.87 AFOP Score: +3.01

"Bear Of The Day" at http://www.zacks.com and what I see elsewhere makes it appear to rate that unenviable label.

Recs

0
Member Avatar simplemts (< 20) Submitted: 9/19/2014 1:19:29 PM : Outperform Start Price: $13.64 AFOP Score: -6.51

Up again !

Recs

0
Member Avatar Kenji94 (35.71) Submitted: 9/7/2014 9:58:33 AM : Outperform Start Price: $14.15 AFOP Score: -9.59

Found with MF screener.Without debt, growth company trading at a discount price.

Recs

0
Member Avatar jonnythekay (20.07) Submitted: 7/14/2014 1:31:22 PM : Outperform Start Price: $17.06 AFOP Score: -26.05

Fundamentals. Cash-generating machine. Every phone/TV/tablet etc needs more bandwidth.

Recs

0
Member Avatar birdup (56.62) Submitted: 6/26/2014 10:04:39 PM : Outperform Start Price: $18.22 AFOP Score: -31.97

pure growth

Recs

0
Member Avatar EnigmaDude (87.65) Submitted: 4/25/2014 11:23:38 AM : Outperform Start Price: $11.65 AFOP Score: -4.08

Bought an initial position in my IRA today after a positive earnings report, decent forward guidance, and the share price dropped (briefly) below $17!

Recs

0
Member Avatar wiseinvesting101 (< 20) Submitted: 4/1/2014 2:36:25 PM : Outperform Start Price: $14.88 AFOP Score: -20.54

AFOP, with a tiny market cap of $250 million and very low PE ratio of 13 (and they pay a dividend too) make this a tremendous value stock that could easily be a $100 stock within the next 5 years!

Recs

2
Member Avatar TMFInnovator (53.94) Submitted: 3/28/2014 11:53:38 AM : Outperform Start Price: $14.26 AFOP Score: -17.97

Adding Alliance Fiber Optic Products (AFOP) to complement Infinera, in my conviction that cable operators will eventually need to upgrade their networks to improve their data transmission speeds.

http://caps.fool.com/Pitch/INFN/7047540/i-consulted-my-ouija-board-las.aspx
http://newsletters.fool.com/1502/coverage/2014/02/11/exploration-2-research-infinera.aspx

It's actually the Google Fiber experiment that has me really interested in AFOP. (http://en.wikipedia.org/wiki/Google_Fiber).

As a quick recap, Google Fiber offers three options.
- There's a free broadband internet option
- A 1 Gbit/s internet option for $70 per month
- And, a version with television for $120 per month.

Yes, you read that correctly. A ONE GIGABIT PER SECOND internet connection speed, which costs about the same amount that I'm paying Comcast today for 50 Megabits per second. That's a 20x improvement in performance, offered for the same price.

You're probably noticing that the value proposition doesn't match here. If Google ever brought Fiber to my city, I would sign up for it in a New York minute!

Which brings me to the opportunity. Google Fiber is only offered in three cities today: KC, Austin, and Provo. But the company announced last month that they had chosen another 34 cities across the US for potential expansion. Reading between the lines, either the Comcasts and AT&Ts of the world must match this performance, or they're going to become obsolete very soon!

Lastly -- if you've read this far -- you'll probably want to know this final detail. Alliance Fiber Optic has one MASSIVE customer that accounted for 35% of revenue last year. Their income statement is being full-throttled by this said customer, with revenues, margins, and earnings all flying through the roof. But they are extremely tight-lipped about who the customer is. Is it Google..for the Fiber project? Is it AT&T..trying to keep up?

I can't find the answer to that in my search, but the point is clear. There's a change underway, and Alliance now has a validation partner that's showing that they're the real deal.

Sorry for the extended monologue. In a word: Outperform. =)

Recs

0
Member Avatar PayMeDivs (22.59) Submitted: 3/23/2014 10:16:29 PM : Outperform Start Price: $14.72 AFOP Score: -20.25

good

Recs

0
Member Avatar Staka (97.67) Submitted: 3/9/2014 3:47:08 AM : Outperform Start Price: $13.50 AFOP Score: -12.08

Positive:
- Cash generator with a sound balance sheet
- Reasonable valuation
- For everything else see TMFPencils evaluation below. I could not say it better.

Negative:
- Cyclical business, might suffer disproportionally in a downturn

Category: ICIp

Recs

0
Member Avatar rfaramir (29.28) Submitted: 3/7/2014 2:46:07 PM : Outperform Start Price: $13.46 AFOP Score: -11.80

tmfpencils rec

Recs

0
Member Avatar lpina2mi (21.79) Submitted: 2/25/2014 11:30:37 PM : Outperform Start Price: $12.42 AFOP Score: -5.73

There is a war brewing. The face of it looks like cable providers (aka Comcast) vs. internet browsers (aka Google). For the consumer, what good is an open and free internet if the byways to get there are controlled by a monopoly that will cost all of us dearly. Will it be a monthly charge the price of a luxury car payment? Will it be a pound of flesh in personal data that turns your life into a commodity? After national healthcare, we will need national communication care. Until that time, the underlying infrastructure is a growth industry--no matter what scenario prevails. AFOP represents one piece.

Recs

0
Member Avatar BlazerMania (96.82) Submitted: 2/6/2014 12:49:09 PM : Outperform Start Price: $11.87 AFOP Score: -5.89

Was flat from 2010 to 2012, but 2013 skyrocketed. Management predicts 85% revenue and earnings growth, but stock trades at a forward P/E of 11???

Recs

13
Member Avatar TMFPencils (99.81) Submitted: 2/6/2014 10:19:25 AM : Outperform Start Price: $12.05 AFOP Score: -7.72

Alliance Fiber Optic Products (AFOP) designs and manufactures components used in the connection of optical fibers and optical fiber networking solutions. Over the past couple days the stock fell 23% after the company reported supposedly "disappointing" results.

Let's see what constitutes "disappointing" to Mr. Market: Year-over-year revenue increased 79%, net income (excluding one-time tax benefits in 4Q 2012) increased by 136%. Wow, what terrible results. Sell. SELL!

Some things to like about AFOP:

** The company is growing like nuts. Sales expanded 63% in 2013. In the first three quarters of 2013, the company produced $12.23 million in operating cash flow, compared to $9.34 million produced in all of fiscal 2012.

** Peter Chang -- founder of AFOP in 1995 -- serves as Chairman, CEO, and President. Chang is largest insider owner of the business, owning 2.13 million shares of the stock.

** Management expects sales to increase by at least 85% in the 1Q 2014. In other words, there are no signs the company's growth is slated to stop anytime soon.

** The stock is trading at a P/E just under 12.5. Are you kidding me?

** $46.68 million in cash with no debt.

** This is a tiny and, basically, unfollowed business. One lonely analyst follows the company (which has a market cap of just $221 million). That one analyst, for what it's worth, anticipates AFOP's earnings will grow 25% annually over the next five years.

All in all, AFOP is a business that is rapidly growing its top and bottom lines, shows no signs of letting up growth, has a strengthening balance sheet thanks to stellar cash flow production, and an active/experienced founder and leader. That's a lot to get for a P/E under 13.

Micro caps can be tricky to evaluate (and very volatile, as AFOP's performance today demonstrates), but AFOP seems to have solid financial growth, involved management, and bright prospects trading at a very reasonable valuation. Outperform.

Recs

0
Member Avatar plowboy (< 20) Submitted: 2/1/2014 1:58:59 PM : Outperform Start Price: $16.15 AFOP Score: -32.84

bandwidth need is just getting started.

Recs

0
Member Avatar BMunkers (51.85) Submitted: 12/7/2013 12:47:52 PM : Outperform Start Price: $15.50 AFOP Score: -27.52

Yes. Appears to have leveled off. May be a good time to get in.

Recs

0
Member Avatar jargonific (< 20) Submitted: 8/8/2013 3:55:02 PM : Outperform Start Price: $15.90 AFOP Score: -36.86

2014 will be an important year for Alliance Fiber Optic, expecting good things.

Recs

0
Member Avatar TMFTiptree (25.47) Submitted: 7/24/2013 11:12:16 AM : Outperform Start Price: $16.29 AFOP Score: -39.37

Fiber build-out for 4G service by comm giants continues to drive growth in AFOP's sales.

Results 1 - 20 of 35 : 1 2 Next »

Featured Broker Partners


Advertisement