Oclaro, Inc. (NASDAQ:OCLR)

Closed and re-opened to more accurately reflect my actual starting price for a longer term hold.

Reposting a pitch from 5-13-2012, as to why I think this is a good buy for the longer term.

They had positve guidance for next year and there is a pending merger that should also have a positive impact on Revenues and Earnings going forward.

Not a "powerhouse", but at this price, a realistic potential for a longer term upside.

Not going in "whole hog" but will watch and nibble as opportunities and events occur.

JMO and worth exactly what I am charging for it.

There are currently 250 OCLR shares in my fund with break-even of around -22.39 USD.
http://caps.fool.com/Blogs/fund-trades/705717.
http://twitter.com/portefeuillefun.

http://www.fool.com/investing/general/2012/01/27/whats-wrong-with-optical-networking-stocks-today.aspx

The long-term prospects for super-fast networking are fantastic. That's why I'm using this short-term price drop to start a CAPScall on Oclaro today. The next bounce will boost my All-Star status even further.

new product momentum in 40G transponders, coherent products (critical in 40g+ networks),40G and 100G modulators and recievers,10G tuneable XFP lasers, and WSS 1x23 high port count will help with revenue going forward. In fact they mentioned they started shipping some tunable XFP lasers, in volume, to a Tier 1 carrier.

Company implemented a cost reduction plan and believe by June of 2012 fixed cost will be reduce to approximately $110m.
Here is the plan:
1. Shifted some production from Zurich to the Shenzen facility and divested some older products no longer in the target market.
2. Outsourcing all back end manufacturing (assembly and test) to 2 contract manufacturers, Fabrinet and one other.
3. Oclaro will keep R&D personnel in the plants to ensure continuity of process and quality. Many of Oclaro's long time customers have long time relationships with the contract manufacturers so they expect a seamless transition.
4. Reduced employee count from 2,800 to 1,200.
5. Shifting to a slightly more variable cost model. This will help with final pricing flexibility and thus should be able to offset some margin erosion with volume. This will make them much more competitive to say Finisar.

Also on the November call, Alain said sales in the first 3 weeks of q4 were tracking 10% higher then q3. The Thailand floods are expected to hit revenue by 30m. Oclaro updated guidance on Jan 3 saying revenue would come in at 86m. So, taking out the impact from the floods, revenue would have come in at about 116m. Alain also said new product adoption is accelerating. I feel that analysts are much too low on both revenue and eps for q1 and q2 and will be adjusting these numbers higher now. They will have to write down equipment and inventory losses from the floods, but will be offset somewhat by business insurance policies of Oclaros' but also Fabrinets'. Oclaro will also book 35m unusual income in q1 from the sale of the shenzen facility. March EPS might be as much as $.25-.35.

With a balance sheet with net cash is somewhere in the neighborhood of $2.00 and a stock price of $4.17 this maybe a very solid investment with great short term gain potential.

http://investor.oclaro.com/secfiling.cfm?filingID=1193125-12-3699

This is a small/mid cap high growth stock that should outperform the S&P during the bull market.

oclr had a great earnings report and the pop to go the to go with it. being brought down by others has given us the oppurtunity to buy

Stock got pulled down by FNSR but will make a rebound

Great space to be in for the long term

Cramer recommend

just saw cramer recommend it... and the financials look atrocious

I've held/followed this stock for a VERY long time. In real time, it has been a huge disappointment/loser. Two reverse mergers later, my cost basis somewhere in a different galaxy! One of their customers is INFN, a stock held in the Fool Universe. Another customer, is Huawei - a Chinese company that is trying like the dickens to get a foothold here in the USA - and keeps getting shot down. It's not like tossing it in here will hurt my score ;-p

I'v'e had this stock for a while now and it just keeps going up

I've owned AVNX for several years & think the recent (2009) merger with BKHM less than a year ago as well as other acquisitions will benefit OCLR both short & long term. I've got about 4000 shares of the company.

This company has cutting edge technology which puts it ahead of

other companies.

after moved to china,company slowly picking up their share of market.

Flat revenues and massive losses. The only way these folks stay afloat is by issuing more and more shares. Bankrupt within 3 years.

Photonic gear for fiber communications.

Bookham is run by useless individuals who have no right to be in charge of corporate organisations. Their objective is personal wealth not shareholder benefit. They have destroyed the company value three times in three years and should be prosecuted for misrepresentation,fraud and mismanagement and spend long periods in gaol.