Opnext, Inc. (OPXT)

Galleon forced to sell.

Financials improving world wide.

Definite long term company. Leader in the industry and sooner or later everyone will be "up to speed".

This company will benefit from the reckless spendiholic gov. plan to socialize the internet. So for a few years it will be overpaid and underworked.

I have followed Opnext for some time now, not digging too deep into it. I finally have had the time to look into the company thoroughly and came away very impressed. Here is what i have found:

#1. Their valuations aren't pretty to the eyes. Their numbers are mostly unattractive except for their nice cash position with little debt (which is huge).

#2. Its about the business. Being a good investor is about prognostication, looking into the future to see what industries and what companies within those industries are best positioned to make above average returns going into the future. OPXT is a perfect example of this. They make optical technologies for various networks. yes, the INTERNET is still BIG business, and it will be bigger as we continue our push for everything wireless. Your 3G IPhone is nice, now imagine it at 10G!!! This is what Opnext does, they are positioned for a fast growing boom of wireless networks.

#3. They are the best at what they do, and are getting better. No one else in their industry of high speed optical storage or transmission has the technology or quality of product that OPXT has, they are best positioned now, and on into the future.

#4. Outperform, long time frame (3-7 yrs), count on it!

TheBank

Details to follow later...
In a nutshell, as the world with its unending appetite for multimedia content generates, transmits, consumes and stores more data the optical communication infrastructure will be needed to support the needs. This company is uniquely positioned because of its R&D strengths.

I Think this is the bottom bounce. Fair P/E

The market for high speed fiber optics should continue to grow, solid financial stats. High ratio of All-star Outperforms. Good time to pick up this penny stock for long term growth. Adds diversity to a sector that I only have a few other stocks in.

Its revenues could be damaged ST by underinvestments in new networks by carrier companies, but LT it should do good.
However in RL I am waiting for the price to go down a bit more

graham cheap

Turnaround story headed toward profit as early as next year.

Its NEW JOYSEE!

fttp, anybody?

Great price for such company

numbers look good. it was hit hard in the past year and has lots of leg room to play the swing.

Look at the huge insider holdings + Institutions holding (together almost 97%). They got punished for missing the revenues when they pre-announced but also predicted higher revenue for the next quarter and announced a massive buy back program. Solid cash position.

Value. Cash on hand and new high speed products just released. 08/09 should see growth for OPXT. Buy.

http://www.reuters.com/article/governmentFilingsNews/idUSBNG31872420080213

http://www.forbes.com/feeds/ap/2008/02/13/ap4649102.html

Using sell-off to initiate long on OPXT at $4. Stock is now trading below book value with roughly 75% of market cap in cash. Share buyback; expecting sequential growth in Q4 - rocky year ahead, but current price offers signficant long term opportunity.