EXFO Electro-Optical Engineering (USA) (EXFO)

Bought share in real life at 3.64. :)

Very volital but still going down. Not a buy...yet.

score = 82

EXFO trades at about 6.73 times earnings per basic share (excluding
extraordinary items); this compares very favorably to the MarketGrader calculated optimum PE ratio of 49.1, based on a historical 29.22% EPS growth rate, suggesting the stock is significantly undervalued.

the company is averaging a 3.2% earnings surprise (difference between expected and actual earnings) over its last six reported quarterly figures, which means it's consistently managing to beat
quarterly Wall Street estimates, an important driver of stock price momentum

Well run company, solid consistent growth.

Low P/E, high projected 5-year EPS growth rate will produce at least a three bagger with this one!

Global telecomm will continue to grow for now and this company should follow suit.

I decided to jump in at what seemed like a recent lowpoint after watching this stock for a couple of months. I planned to green-thumb as soon as I saw it below $5. I have no set sell-point currently.

I expect global telecommunications industry to grow in the next few years and this company too....long-term investment.

Low institutional ownership, high growth rates, good field, good price...lots of room to grow, or be acquired.

the future is optical

Great margins primed for growth in this sector. I look for a 7 dollar mark by May 08.

Steady Pick. You can't predict what the "Experts" estimate EPS. However, product development for this co is constant and reliable.

THIS STOCK IS AN EXCELLENT PICK FOR IMMEDIATE GROWTH, IT IS HIGH RISK BUT WITH THAT COMES THE POTENTIAL FOR HIGH REWARD

A solid, growth ortiented company that cannot fail to bring rewards to the prudent investor.

Mega cheap valuation, quality products and diverse customer base, #1 vendor of portable optical test solutions, solid management, amazing balance sheet

earnings will be down

Global telecommunication industry has benefited in more ways than one with the various technological advances that has occurred in the communication industry in the past decade. Network testing and measurement is one area that grew the most as the network infrastructure moved from copper carriers to the present optic fiber based and is all set to embrace next generation copper based broadband network.

EXFO is one company, which has made its mark in the field of network testing and measurement in global telecom industry. The company has grown organically and inorganically over the years withstanding many adverse situations to become the third largest player in the field of optical and protocol testing. Of the $1.6bn market it controls approximately 12% market share.

The Telecom division, the core segment of the company contributed 83% of the total revenue for the three-month period ended November 2006 while the rest 17% from Life Science and Industrial division. During the same period revenue increased by 31% due to increased penetration of the Telecom division in Europe-Middle East-Africa (EMEA) market. EMEA combined with the U.S. market accounts for over 80% of the company’s revenue.

Fiber to the home (FTTH) roll out has accelerated over the years as a result of technological advances and market reforms. The U.S. has only 436,000 FTTH subscribers, a market which is growing at a rate of 215% per annum. This growth can be attributed to factors like maturing online video applications, drop in cost per subscriber from $4000 in 2000 to $300 (expected in 2007). Newer optical standards in the offing will make Video on Demand and High Definition T.V. a reality in the near future.

In the U.S., Verizon is the leading player in FTTH market and is the largest customer of EXFO. The company by acquiring Consultronics in January 2006 has entered the FTTH testing and measurement market in a big way. These factors along with net accepted orders of $37 million for the first quarter of 2007 positions the company at an advantage.

Optical networking upgrade cycle should help. Diversified customer base. Results reported on 09-Jan-2007 reflect 57% gross margins, highest in 5+ years.