INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.
NPTN (market cap is $0.194B was $0.298B)
Neophotonics manufactures electro-optical switches, the kind of components that most folks don’t know exist yet rely on whenever they use the Internet. All of those fiber optic cables have to pull in electrical signals, turn them into optical signals, then turn them back into electrical signals. Neophotonics makes some of the highest speed switches, which is a good technology in a good market.
And then, someone tweeted something and a trade war was begun, and the stock dramatically dropped. Evaluating the stock price is too filled with uncertainties in the current environment. A simplistic approach is to assume that the trade wars and the trade war repercussions will be temporary and that the company and the stock will recover quickly. Typically, preparing for governmental interactions allows time for considerations; but one tweet can return a company to success or doom it to failure. I’m assuming the current situation is very temporary. I might buy more at this level, but don’t expect to have investment funds for such a purchase. Of course, good news can happen as quickly as bad news. I’ll stay tuned.
DISCLOSURE LTBH but only just begun in 2017 as I switched from GigPeak's buyout and into NPTN, thinking that staying in the same industry would be a good thing. Not so far. (I've also collected links to the other discussion boards and my other stocks over on my blog http://trimbathcreative.wordpress.com/2019/06/30/semi-annual-exercise-Mid-2019/ )